Ann Summers Owners Consider Selling ‘Big Stake’ Amid Financial Pressures
The owners of lingerie retailer Ann Summers, the Gold family, are reportedly exploring the sale of a significant stake in the business as part of a strategic review. According to Sky News, discussions with advisory firm Interpath have been ongoing for several weeks, with formal instruction expected soon.
While the specifics remain unclear, one possibility being considered is the dilution of the Gold family’s full ownership. However, it is yet to be determined whether this will involve selling a controlling stake in the business.
In a statement to Sky News, Vanessa Gold, Ann Summers’ chair, said: “We, like many other retailers, are dealing with the unhelpful backdrop to the business of the decisions announced by the government at the Budget and the rising cost to retail. As a family-owned business, we are in a fortunate position and have committed investment for over 50 years. This has created a robust and resilient business.”
She added, “We are exploring a number of options to further grow the brand into 2025 and beyond.”
The news follows recent redundancies within the company and a £5 million cash injection by the Gold family to stabilize operations. Despite these efforts, Ann Summers reported a pre-tax loss of £3.8 million for the year ending July 1, 2023. While still operating at a loss, this marks a significant improvement compared to the £21.9 million deficit recorded the year prior. Additionally, turnover rose modestly, climbing from £101 million to £104 million.
Ann Summers has faced mounting challenges amid the broader retail industry’s struggles, including rising costs, inflation, and shifts in consumer behavior. Vanessa Gold pointed to government policies and economic conditions as key factors impacting the business.
For over five decades, the Gold family has led Ann Summers, transforming it into a well-known brand in the UK lingerie market. Any move to sell a significant stake would represent a turning point for the company, potentially introducing new investors and strategies aimed at revitalizing the business.
The strategic review and possible sale come as the company works to navigate the post-pandemic retail landscape while seeking opportunities to expand and secure its future. Whether the involvement of external investors can help Ann Summers achieve sustainable growth remains to be seen. For now, the retailer’s fate rests with the decisions of the Gold family and their potential partners.