Glitz and glam
In 2002 Graphite identified the opportunity to acquire Jane Norman from its founding family and back the long-standing CEO to build on the company’s sector-leading sales densities and supply chain metrics.
In January 2003 Graphite Capital led the £60 million management buy-out of Jane Norman from the Freed family who had founded the business. Jane Norman was a fast-growing chain of women’s fashion retail stores and concessions. Its clothing and accessories were targeted at the 15-25 age group. We backed an exceptionally experienced chief executive with strong expertise across all key areas of this fast-growing retail business.
The business generated high sales per square foot from its relatively small base of existing stores, making it highly suitable for nationwide retail roll-out, both through freestanding stores and in department store concessions. We were also attracted to Jane Norman’s efficient supply chain which minimised lead times and allowed mid-season range adjustments where necessary. The company had exceptionally high stock turns and sales densities.
Under Graphite's ownership, Jane Norman:
- accelerated the roll-out of retail stores
- solidified its relationship with Debenhams, the company’s major concession partner
- strengthened the buying team to reduce the dependence on the CEO
- broadened the product range to include a range of additional clothing items and accessories
- grew turnover and profit significantly as the number of outlets doubled to 96
In 2005 Jane Norman was sold for £117 million to Baugur, generating a multiple of 2.9 times cost and an IRR of over 50 per cent.
