BlueGem Capital, Liberty London’s prominent shareholder, has recently made a significant move by selling a majority stake in the iconic department store in a deal valued at approximately £300 million. The private equity consortium led by Glendower Capital has taken over, but BlueGem’s stake only comprised 40% of the business, leaving them without complete control. Meanwhile, other investors, including BlueGem founder Marco Capello, have retained their stakes, with Capello continuing in his role as non-executive chairman.
The sale signifies the end of BlueGem’s ownership of Liberty, which is renowned for its rich history and unique offerings in the retail space. Under BlueGem’s stewardship, Liberty has experienced substantial growth, including a thriving wholesale fabrics operation and a successful foray into fashion and accessories. BlueGem first acquired a controlling interest in Liberty for £32 million in 2010 before later reducing its stake to 40% in a 2014 refinancing. The return on investment for BlueGem has been impressive, estimated at around 12 times the initial investment.
Despite challenges, such as their investment in Jack Wills, BlueGem’s sale of their stake in Liberty symbolizes a prosperous chapter for the company. Their substantial investments in Liberty over the years have resulted in increased sales and profitability. In the most recent financial year, Liberty boasted sales of £133 million, with Ebitda of £21 million and pre-tax profits nearing £7 million. Projections for the upcoming year anticipate further growth, with an expected 20% increase in Ebitda.
A key factor in Liberty’s success under BlueGem’s tenure has been its expansion into own-brand products. With the introduction of nightwear, swimwear, and a high-end womenswear collection during the BlueGem era, Liberty has witnessed growth in this area. Additionally, the launch of a B2B platform for Liberty Fabrics has proven successful, with reported sales quadrupling since BlueGem’s involvement. Liberty’s commitment to its own-brand strategy has positioned the company for continued growth and success in the future.
To learn more about Liberty London’s latest developments, visit their official website here. For more information on BlueGem Capital and their investment portfolio, you can visit their website here.
