By
Reuters
Published
Jul 2, 2010
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Fashion retailer Office could be sold

By
Reuters
Published
Jul 2, 2010

(Reuters) - Office, the British fashion and sports footwear retailer whose products are worn by celebrities such as David Beckham, has hired advisers, which could lead to a sale of the business.

Office
www.office.co.uk - S/S 2010


The company -- owned by West Coast Capital, the private equity vehicle of Scottish entrepreneur Tom Hunter -- said on Friday it had appointed corporate adviser Hawkpoint in the UK and boutique investment firm Financo in the United States to advise on options for the business, including its possible sale.

"WCC has held the business for seven years now, so this is timeous [sic] in the lifecycle of private equity, particularly given we have received several unsolicited approaches for the business," said Office Chief Executive Brian McCluskey.

Office trades from 124 stores, including concessions in Selfridges, House of Fraser, Harvey Nichols and Topshop. It also has an Internet business.

In the year to end-January 2010 it made earnings before interest, tax, depreciation and amortisation (EBITDA) of 18.6 million pounds, up 146 percent, on sales of 135.7 million pounds, up 29 percent.

Earlier this month, high-street fashion chain Republic was sold to U.S. private equity firm TPG for 300 million pounds, an exit multiple of about 9 times EBITDA.

Applying the same multiple to Office would give it a valuation of about 170 million pounds.

(Reporting by James Davey; Editing by Gary Hill)

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