Your browser is no longer supported. For the best experience of this website, please upgrade to a newer version or another browser.

Your browser appears to have cookies disabled. For the best experience of this website, please enable cookies in your browser

We'll assume we have your consent to use cookies, for example so you won't need to log in each time you visit our site.
Learn more

Sir Tom Hunter and JD linked to Cruise deal

Sir Tom Hunter and JD Sports Fashion are understood to be circling beleaguered designer mini-chain Cruise just one week after the business was linked to restructuring specialist Hilco.

Entrepreneur Hunter is believed to be the favourite to acquire Cruise through his private equity business West Coast Capital, which is currently seeking a sale of its Office footwear chain.

JD Sports Fashion, which owns young fashion chains Bank and Scotts as well as eponymous stores, is also thought to be circling Cruise which emerged from a pre-pack administration just 18 months ago.

Drapers revealed last week that restructuring firms including Hilco and GA Associates had made direct approaches to Cruise’s bank HBOS about buying its debt. It is unclear whether restructuring specialist Hilco is also still involved but GA Associates is thought to have stepped away from any deal.

The 12-store retailer has suffered a sharp decline in sales after its customers stopped splashing out on designer goods in the wake of the austerity Budget and more recently because of the disruption to trade caused by the snow. Cruise’s stores are largely in Scotland and the north of England which have been worst hit by the bad weather.

Cruise emerged from a pre-pack administration 18 months ago after closing about six of its shops. The administration was blamed on the fact the business was owned by an Icelandic fund - Kcaj - which struggled to survive in the wake of the global banking meltdown and which could not deliver on its promises to support Cruise’s expansion plans.

Accounts filed at Companies House for Cruise Fashion, the parent company, showed the business had sales of £21.4m for the period between May 15, 2009 to January 30 this year. It made an operating loss of £315,000 over the period, but this was blamed on an exceptional cost of £478,000 relating to the reorganisation of the business post administration.

Hunter declined to comment and JD Sports Fashion was not available at the time of writing.

Readers' comments (2)

  • Suppliers & landlords will be a bit wary after what happened with USC I think!

    Unsuitable or offensive? Report this comment

  • Suppliers & landlords will be a bit wary after what happened with USC I think!

    Unsuitable or offensive? Report this comment

Have your say

You must sign in to make a comment

Please remember that the submission of any material is governed by our Terms and Conditions and by submitting material you confirm your agreement to these Terms and Conditions. Links may be included in your comments but HTML is not permitted.