White Stuff ‘ski bums’ who began out promoting T-shirts out of a suitcase in posh resorts are in line for £50m payout after promoting their way of life and clothes chain
The ‘ski bum’ founders of White Stuff are set to pocket £50m after selling their lifestyle and clothing chain.
White Stuff was set up by Sean Thomas and a friend George Treves in the French Alps in 1985 selling T-shirts and sweatshirts to skiers in upmarket resorts such as Méribel and Val d’Isère.
After hatching the idea while drunk to help fund their skiing habit, they made £7,000 in their first season selling the clothing items to fellow skiers. Today, White Stuff has more than 130 stores across the UK.
They opened their first store in 1991 in south London before branching out to Belgium and Germany as well as having dozens of concessions including Marks & Spencer, John Lewis and Next.
Now, South African fashion and homewares retailer TFG has bought UK-based fashion retailer White Stuff, it said on Friday, in a deal that will help it reach ‘critical mass’.
It is understood TFG, which also owns Hobbs, Whistles and Phase Eight, will pay around £50 million for the business
Mr Treves (left) and Mr Thomas (right) will step down from the board and leave the business
It is understood TFG, which also owns Hobbs, Whistles and Phase Eight, will pay around £50 million for the business.
The new owner has said it plans to expand White Stuff’s portfolio of shops and concessions further after positive recent growth for the brand.
TFG did not disclose a value for the deal, but a person with knowledge of the matter said it was about £50 million.
White Stuff was set up by Sean Thomas (pictured) and a friend George Treves in the French Alps in 1985 selling T-shirts and sweatshirts to skiers in upmarket resorts such as Méribel and Val d’Isère
It is understood that Mr Trevers and Mr Thomas and their families own nearly 80 per cent of the shares meaning they will recieve around £40m before the tax.
White Stuff chief executive Jo Jenkins will continue in the role while founders Mr Trevers and Mr Thomas will step down from the board and leave the business.
The pair hired investment bank Rothschild in February after the receipt of an unsolicited approach from a prospective buyer, according to Sky News.
There was understood to be uncertainty on whether the deal would be signed in time to avoid any increase in capital gains by Rachel Reeves in the chancellor’s budget next week.
Mr Treves said the company’s sale to the Foschini Group (TFG) is ‘significant and emotional’ for him and co-founder Sean Thomas.
‘Today marks a significant and emotional milestone for Sean and me. We have spent over 40 years building this company from the ground up,’ he said.
‘While this decision was not an easy one, we believe it’s the right next step for White Stuff and know that TFG are committed to providing White Stuff with new opportunities for growth.’
Mr Treves, co-founder of retailer White Stuff, said the company’s sale to the Foschini Group (TFG) is ‘significant and emotional’ for him and co-founder Sean Thomas
British fashion and lifestyle brand White Stuff has more than 130 stores across the UK
White Stuff chief executive Ms Jenkins added: ‘This is a very exciting moment for White Stuff and represents the natural next step for our business.
‘It builds on the hard work and success the brand has achieved in recent years. TFG London is the ideal owner for our business.
‘They value our brand, have a wealth of premium retail experience, and will be excellent long-term owners to support White Stuff’s next phase of growth.’
Justin Hampshire, chief executive of TFG London, said: ‘With White Stuff’s strong presence on the high street and significant potential for sustained growth, we are committed to supporting Jo and her talented team with their ambitious rollout strategy to further increase its store and concession estate.
‘Simultaneously, TFG London will continue to invest in the White Stuff brand and online offer to drive further awareness and growth.’
In the financial year to April 30, White Stuff achieved revenue of 154.8 million pounds ($201 million) and core profit of 8.6 million pounds, TFG said.
Over 85% of its revenue was generated from the store estate and online, with the remainder from its international and wholesale operations.
TFG will be retaining the experienced senior management team of White Stuff led by Ms Jenkins.
