Robert Dyas close to rescue deal to save 1200 jobs

Robert Dyas looks set to avoid administration with more than 1,200 jobs set to be saved, after the hardware store chain and its lending banks, including the Lloyds Banking Group, reached a last minute deal.

The company’s management team, led by Steven Round, is in the process of completing a management buy-out of the business and lead bank Lloyds are fully backing Round and his team.

The company hopes the deal will be completed before Easter and the deal could value the chain at £30m. However Robert Dyas’ owner, Change Capital Partners who bought the chain five years ago for £61m, will not be involved as the equity is expected to be wiped out under the new deal.

Change Capital had called for an end to the delays as the company was close to administration, which paved the way for a deal to be struck.

The business, which runs 99 stores, has recently benefited from the collapse of its rival Woolworths and is in the process of agreeing a restructuring of rental payments, in order to improve cash flow and return to profitability.

Discuss this in the Finance Markets forums

Story link: Robert Dyas close to rescue deal to save 1200 jobs