Fat Face founders’ hefty payout
Speculation mounts as the company heads towards sale
Tim Slade and Jules Lever, the founders of clothing chain Fat Face, are set for a highly profitable exit from the company, it has been reported.
The business is now open for bids from which can be made to NM Rothschild and is expected to attract offers in the region of £300m.
Slade and Lever who possess a 30% stake in the business are expected to gain as much as £90m from a deal, according to the Sunday Times.
Another major beneficiary from any buy-out will be private equity firm Advent who bought a 54% stake in the company in 2005.
Senior management members Louise Barnes and Stuart Owens also possess a 16% in the business which gives them the opportunity to enjoy a cash-in.
It is not clear at this time whether the founders and senior management plan to fully exit or to remain with the business.
The fast growing company has been very successful and is expected to have 130 stores by the end of May. Turnover for the 2006/07 financial year was £111m.
GB contacted Fat Face but the company was unable to offer further details on the negotiations.
© Crimson Business Ltd 2007