Hunter secures £16.5m funding

Wellington boot brand Hunter has secured a fresh £16.5m cash injection to support future growth and help see it through the coronavirus pandemic. 

Hunter’s existing backers have invested as part of a deal under which former minority shareholder Pall Mall Legacy will become the controlling shareholder.

London-based brand house Pentland will remain a minority shareholder in the company, while Pall Mall Legacy and its stake in Hunter will continue to be managed by private equity firm Three Hills Capital Partners.

Searchlight Capital, which has controlled Hunter since 2012, will retain a large minority stake and board representation.

As part of the recapitalisation, existing lender Wells Fargo has augmented an additional £2m in capital to an existing financing facility, which has been extended for a further three years.

Hunter has been involved in a process to seek new funding with the support of its advisers AlixPartners. Together, they had been running an auction since March which is said to have attracted a number of takeover bids from a range of parties including private equity and trade bidders from both the UK and abroad. 

Hunter has now pulled the plug on the sale process, Drapers understands. 

Gordon McCallum, chairman of Hunter, said: “While the retail sector across the globe faces huge challenges presented by the Covid-19 pandemic, we are extremely fortunate to have the support of our stakeholders, enabling us to successfully strengthen our balance sheet.

“This will ensure that we are able to withstand the current market downturn and emerge even stronger, to grow the iconic and much-loved Hunter brand over the long term.”

Source