Will White Stuff owners sell after unexpected takeover approach?

There’s a big question mark around how the owners of the White Stuff chain might now proceed after an unsolicited takeover approach has seen them engaging Rothschild to advise them.

That’s according to Sky News, which reported that George Treves and Sean Thomas — who founded the business in 1985 — are exploring a “potential” sale.

They haven’t commented on the report and City sources said that they haven’t committed to a sale. It seems their decision to sell will, understandably, be dependent on what a prospective buyer is prepared to pay.

But what might the firm be worth? Sky reported one analyst suggesting a valuation of around £50 million. Of course, it very much depends on how much someone wants to buy it and how many more would-be buyers emerge once the business is in play. 

The near-40-year old business has 123 shops and 54 concessions in the UK, plus concessions in Germany and Belgium. It sells globally via its website and has 575 wholesale stockists, 165 of them in the UK and Ireland and 410 in other countries. 

It signed up for a new flagship at Liverpool One only last month. 

White Stuff is wholly owned by its founders, employs 1,200 people and is run by Jo Jenkins, the ex-M&S clothing and beauty head who joined in her current role in 2017.

The company had been loss-making in the initial pandemic period but returned to profitability the following year. Then, in the 52 weeks to 29 April 2023, it reported total sales up 13.3% year on year to £151.4 million. 

And profit on an EBITDA basis leapt to £7 million from £2.9 million, when adjusted for non-recurring items such as Covid-related grants and business rates relief.

It also later reported a 16% sales uplift in November and December 2023.