According to a recent report by Sky News, BlueGem Capital Partners, a prominent private equity firm and key investor in London’s renowned department store Liberty, is apparently exploring options to divest its stake in the business. The news outlet has revealed that BlueGem has engaged UBS to assess interest from potential purchasers, with an initial price tag of approximately £300 million. However, industry insiders have suggested that the company could potentially command a price as high as £350 million.
In an interesting turn of events, BlueGem initially acquired Liberty in 2010 for a mere £40 million, signaling a significant increase in the store’s valuation over the years. This surge in worth can be credited to the extensive efforts made to enhance Liberty’s brand and its advantageous position in a highly competitive retail environment. By focusing on luxury merchandise and maintaining a compact physical footprint, Liberty has solidified its status as a must-visit destination for both tourists and affluent shoppers.
Despite the absence of recent trading updates, financial data from Liberty Zeta, the store’s parent company, has showcased an impressive Ebitda earnings figure of £21 million in the last fiscal year. This strong financial performance was largely driven by strategic expansions in its retail and fabric divisions, along with the successful proliferation of the Liberty London luxury brand through global wholesale channels.
It is worth noting that BlueGem’s portfolio includes well-known brands such as Jack Wills and Mamas & Papas, although its ownership of Liberty is not definitive following a partial divestment in 2014 to undisclosed international investors. While BlueGem is believed to presently hold around 40% of Liberty’s shares based on insights from the retail sector, the precise ownership breakdown remains ambiguous. Moreover, it remains unclear whether the reported £300 million asking price pertains solely to BlueGem’s stake or encompasses the sale of the entire company.
The potential sale of Liberty marks an intriguing development within the luxury retail segment and raises questions about the future ownership of this iconic British establishment. As BlueGem looks to make an exit, uncertainties loom over the direction the department store will take in the coming days.
For more information on this topic, visit: Retail Gazette and BBC Business News.
