N Brown Group faces potential privatisation with a £191m bid.
- Joshua Alliance, with existing board experience, leads the takeover offer.
- Alliance Family already controls a majority stake in N Brown Group.
- The acquisition aims to enhance growth away from public markets.
- The proposal arrives amidst challenging retail and market conditions.
The N Brown Group, a Manchester-based e-commerce enterprise, is on the brink of privatisation following a takeover bid valued at £191 million. This offer, led by non-executive director Joshua Alliance, seeks to acquire the entirety of N Brown’s share capital in cash. Notably, Mr. Alliance, who has served on the board since 2020, currently holds a 6.6% stake. The Alliance Family Concert Party, to which he belongs, already possesses a significant 53.4% interest in the company’s issued share capital, underscoring the family’s longstanding association with N Brown.
Joshua Alliance, the son of former Director and Chair Lord Alliance, expressed enthusiasm for continuing his family’s historical support of N Brown. He commented, “My family have been supporters of N Brown for over half a century, providing capital and having been involved in the strategic leadership of the business. I am delighted to continue that history.” His statement highlights the intention behind the acquisition — to propel N Brown’s growth potential by leveraging additional capital, expertise, and resources, all within a private setting.
The primary rationale for taking N Brown private, as articulated by Falcon 24 Topco Ltd, is strategic. The company has faced challenges such as low trading liquidity and limited interest from UK fund managers in small-cap consumer stocks. A delisting from public markets, it is believed, could benefit N Brown by reducing costs associated with maintaining a listing and by facilitating the acquisition of fashion brands with established UK market presence.
According to the board, this acquisition is aligned with N Brown’s long-term strategy, which aims for sustainable growth amidst a challenging retail landscape. Interim Executive Chair and CEO Steve Johnson remarked on the necessity of additional funding, explaining that today’s announcement from Bidco will enable N Brown to accelerate its strategic objectives to benefit all stakeholders. “N Brown continues to consistently serve its loyal and otherwise underserved customers, with exciting long-term prospects for the business,” he stated.
The operational landscape for N Brown is currently under review, with changes being implemented to ensure the company is suitably sized for efficiency and sustainability. This includes proposed redundancies affecting 105 positions, both at the head office and within the supply chain hub, as the business realigns its workforce to better fit its streamlined objectives. The completion of the acquisition is anticipated in the first quarter of the coming year.
In summary, N Brown’s potential privatisation under Joshua Alliance is poised to redefine the firm’s strategic trajectory amid evolving market dynamics.
