UK retailers are increasingly being viewed as acquisition targets as the sector is hampered by cost of living pressures
Fashion statement: Among the companies that have been ousted from administration is Roland Mouret, whose clothes were worn by Halle Berry
UK retailers are increasingly being viewed as acquisition targets as the sector is hampered by cost of living pressures.
According to an analysis by law firm RPC, the number of mergers and acquisitions (M&A) transactions in the UK retail sector rose 21 percent from 28 to 34 at the end of June.
The jump bucked a broader trend across the UK economy, where M&A activity fell 15 percent from 2,490 deals to 2,120 over the same period.
Karen Hendy, co-head of retail at RPC, said the increase in deals was “partly” due to an increase in businesses for sale as the sector was impacted by rising costs and lower consumer spending.
Among the companies snatched from administration during the year was luxury fashion label Roland Mouret, whose clothes have been worn by celebrities such as Halle Berry.
RPC stressed that a large number of acquisitions targeted fashion retailers. A recent example is Ted Baker, which was bought by US firm Authentic Brands Group for £211m last month.