It’s business as usual after shock takeover
‘We are all very excited about the future’
It was business as usual at Arran Aromatics this week after a surprise takeover.
The announcement that the firm had been bought out of administration caught most people on the island on the hop.
And much has been made this week of the fact that the acquisition deal by Endless LLP was completed in just seven days. However, Arran Aromatics went into voluntary liquidation back in December in a bid to restructure their finances, but they did not make this public, as they rebranded the firm now known simply as Arran.
Now Leeds-based Endless, one of the UK’s leading mid-market private equity investors, has acquired the firm and promised new investment.
The acquisition means all employees, including 32 on Arran, can breathe a sigh of relief as they have transferred to the new company which has acquired the business and assets of Arran and all its stores and operations remain open for business.
William Wellesley, the former managing director of Molton Brown Cosmetics prior to its sale to Kao Corporation, will join the board as non-executive chairman. Allan Caldwell, previously chief executive of Scottish Fine Soaps and a highly-experienced manufacturing and retail executive, has been appointed chief operating officer.
Jacqui Gale, who was central to the rebranding, remains chief executive officer.
Arran, established in 1989 by Janet and Iain Russell has grown as a luxury brand in the natural wellbeing space. With sales of £6 million per annum it operates from six retail stores in Scotland and employs more than 100 people.
Manufacturing and retail operations will continue to be run in Brodick by head of operations, and son of the founders, Duncan Russell, producing the new Sense of Scotland branded products, launched late last year.
A new showroom store was recently opened on George Street in Edinburgh which includes an area where customers can fill and personalise their own fragrances.
Duncan’s brother, brand director Andrew Russell, commented: ‘We are delighted to have received the investment from Endless, which has been delivered at a vital time for Arran. The investment in the brand over the past few years has positioned it well for growth across a wide range of geographies and this new investment will help us make this a reality. Arran, Sense of Scotland is poised to join the best loved Scottish brands around the world and we are all very excited about the future.’
Endless is an experienced retail investor, having driven the growth of The Works Stores from 200 to nearly 400 stores, and includes Bathstore and The West Cornwall Pasty Company amongst its previous investments.
Glaswegian Francesco Santinon led the investment for Endless and he said he is looking forward to the future.
Mr Santinon said: ‘Arran is one of those quintessentially Scottish brands that resonates with consumers around the world. We are delighted to be working with the Russell family to continue the progress of recent years of establishing Arran on a global stage and expect to be announcing more retail stores in the future.
‘Due to the growing pains experienced over recent years it became evident that Arran required further investment that has now been secured as has the future for its employees. Its manufacturing and retail operations will continue to operate as normal.’
We trust all is well at Arran Aromatics.
No one, apart from those closely connected to the firm, appeared to be aware of the behind-the-scenes restructuring taking place as the company was very publicly rebranding as simply Arran and its product range, A Sense of Scotland.
However, a simple check of the official public record, The Edinburgh Gazette, shows Arran Aromatics went into members’ voluntary liquidation at the end of November last year with the appointment of liquidators KMPG days later.
However, none of this was put in the public domain and – it seems – no one found out.
It was certainly a complete surprise when the news broke on the BBC website last Friday night with the headline: ‘Jobs saved after Arran Aromatics is put into administration.’ And the news spread like wildfire across the island with most asking: what administration?
Members’ voluntary liquidation is where the shareholders of a solvent company adopt a voluntary winding-up resolution and appoint a liquidator to realise the assets of the business to distribute the proceeds to company members.
It was stated in The Gazette last December that the company was able to pay all its known liabilities.
However, it now means there is an ‘oldco’ Arran Aromatics and a ‘newco’ Arran Aromatics and any creditors of the ‘oldco’ only have until April 3 to send details of their claims to KPMG Restructuring.
It is indeed good news that the company has been acquired by Endless LLP.
It has admitted Arran Aromatics has experienced ‘growing pains’ and said it requires further investment, which it has now pledged.
So it’s business as usual at Home Farm and we hope Endless will be open and honest on its plans for the vital Arran business in the months and years ahead.