The John David group has splashed out £18.5 million buying branded fashion chain Bank as predicted by Drapers (December 1).
Andy Scott, who founded Bank in 1994, will remain as buying director. Damian Scarlett will continue in his role of managing director and Peter Alecock will stay on as finance director of the chain. Private equity firm Phoenix, who bought the chain for £30m in 2005 will exit the business.
Bank has 49 stores which sell men’s and women’s brands such as Gio-Goi, Firetrap, Superdry and Henleys. For the year ended August 31 Bank made an audited loss of £5.37m.
John David Group executive chairman Peter Cowgill said: “We are pleased to announce our acquisition of this strong retail brand. Its trading style complemented the trading ethos of JD on the high street and enhances our portfolio of brands and products. While we fully recognise the challenges of fashion retail, we believe that our capable management team will effect a successful combination of our current Scotts store and the Bank chain, creating an enhanced fashion division within the group and a real opportunity for sales and margin growth.”
JD said that deferred consideration to a maximum of £1m may be payable to Phoenix and the management team if pre-tax profit exceeded certain thresholds in the period to February 2008.