Hunter Boots, the renowned brand adored by celebrities, has successfully secured a rescue deal to navigate the challenges posed by the ongoing coronavirus pandemic. With an injection of £16.5 million in funds from existing shareholder Pall Mall Legacy, along with support from Searchlight Capital, Pentland, and other minority shareholders, the company is better equipped to weather the storm. Furthermore, Wells Fargo, the company’s existing lender, has extended and increased its financing arrangements for another three years, granting Hunter an additional £18.5 million to support its future growth.
Although this financial lifeline provides some relief, Hunter Boots still faces significant hurdles. Many events and festivals, where the brand’s products are highly sought after, have been cancelled this year despite the easing of lockdown restrictions. This elongated period of challenge adds to the difficulties the company has already encountered in recent months. Nonetheless, with its improved financial stability, Hunter Boots seems to be on a promising path. Prior to the crisis, the brand’s prospects were already on an upward trajectory, boasting an operating profit of £7 million and record sales of £113.8 million in its last full-year results.
Established in 1856, Hunter is a forward-thinking British heritage brand renowned for its iconic Original boot. Over time, the company has diversified its offerings and made significant strides in establishing a strong online presence, with approximately 30% of its global sales generated through e-commerce. This formidable presence in online retail has likely contributed to the support from the new investors. By recapitalizing Hunter, the aim is to fortify its financial position and enable it to withstand the economic pressures resulting from the current global crisis induced by Covid-19.
Pall Mall Legacy, an investment vehicle backed by Goldman Sachs and managed by Three Hills Capital Partners, will now become the majority shareholder of Hunter Boots. Searchlight Capital will also invest additional funds, securing a significant minority position and a seat on the board. Pentland Group, another shareholder, will maintain a minority shareholding and a presence on the board.
Having initially invested in Hunter in 2018, Pall Mall Legacy intends to offer strategic and operational support to the brand’s management through its team of experienced retail industry professionals. Gordon McCallum, the chairman of Hunter Boots, exudes confidence in the brand’s potential and lauds its strong presence in the UK, Europe, Japan, and the US. He believes that Hunter’s reputation for excellence, innovation, and appeal to discerning fashion-conscious consumers positions it favorably for future success.
To learn more about the brand and its products, visit the official Hunter Boots website: https://www.hunterboots.com/
For further information on the investment vehicle Pall Mall Legacy, managed by Three Hills Capital Partners, explore their website: https://www.threehillscapitalpartners.com/