Dumped by The Good Guys Kitchenware UK kitchen accessory Company Lakeland is considering putting itself up for a sale in a bid to secure its future.
One of the first moves of JB HI Fi Group CEO Terry Smart when he was appointed to restructure The Good Guys back in 2016 was to get rid of Lakeland accessories that had been given extensive floor space in The Good Guys stores.
The business claims that they are facing a “challenging” retail environment.
According to UK media reports the company is thought to have appointed financial advisers from consultancy Teneo to explore opportunities as a recapitalize deadline looms.
A spokesperson for the retailer that it was looking at different options having come under pressure from rising costs.
“In response to the challenging retail environment, we are considering a number of options to ensure a sustainable and long-term capital structure, which builds on our 60-year heritage as one of the UK’s most innovative homeware retailers.”
The Windermere-based company sells kitchenware like air fryers and food processors and homeware products from 59 outlets across the UK, with about 1,000 staff.
The Company that has been under threat for some time has around 4,000 products in its range and produces around 18 catalogues each year.
The UK Company has flagged financial pressures in recent years after reporting a pre-tax loss of A$4.1M loss for 2023 in its most recent published accounts, saying it entered the year “facing the most challenging economic conditions for several decades”.
Higher inflation leading to price rises had flattened demand for many of its product categories, the company said.
Last year the Company delivered over A300M in revenue.
million, broadly flat compared with the previous year.
Sky News claims that the accounts show the company has a credit facility with HSBC which is not due to expire until 2028.
