DENBY

Background

Established in 1809, Denby manufactures high quality stoneware from its Derbyshire factory, where it also welcomes 250,000 visitors a year to the Denby Visitor Centre. Having been acquired in a traditional private equity transaction several years prior to Hilco’s involvement, Denby became overleveraged with a £72 million historic debt burden, a substantially underfunded final salary pension scheme and a high fixed cost base.

BDO and Clearwater had been seeking a purchaser for the business since July 2008 and, with the lender group unwilling to advance further funds, were carrying out contingency planning for an administration.

Hilco Capital’s role

• Backed £30m MBO in February 2009
• Provided finance and working capital to stabilise the business while restructuring plan developed
• Senior Hilco team took roles on Denby’s board
• Wider Hilco team provided support in areas including IT, HR and store operations
• Led full review of brand architecture and guided brand extension and partnership strategies
• Hilco Property renegotiated leases, relocated warehouse and managed rapid expansion of outlet store portfolio
• Financed acquisition of other heritage pottery companies
• Recruited new, highly experienced MD to grow the business internationally

Results

• Secured 600 jobs and the future of a historic British manufacturing business
• 100 additional jobs created to date
• Doubled the number of outlet stores to 28 within 18 months, increasing retail turnover by 75%
• Enduring partnership with fashion & home brand Monsoon launched in October 2009
• Successful cookware and cutlery ranges launched
• Acquired Burleigh, Poole Pottery & Hartley Greens
• Substantial expansion in South Korea
• Business returned to profitability
• Won Insolvency & Rescue Awards 2009 ‘Business Rescue of the Year’