UK RETAILERS PRIME TARGETS FOR TAKEOVERS

BRITISH retailers are increasingly being viewed as takeover targets as the sector is hobbled by the cost of living squeeze.

The number of mergers and acquisitions (M&A) in the UK retail sector rose 21pc in the year to the end of June from 28 to 34, according to analysis from law firm RPC.

The jump bucked a wider trend across the British economy, where M&A activity fell 15pc over the same period from 2490 deals to 2120.

Karen Hendy, co-head of retail at RPC, said the increase in deals had been ‘partly due’ to a rise in companies being put up for sale as the sector was hit by rising costs as well as lower levels of consumer spending.

Firms that have been plucked from administration over the year include luxury fashion label Roland Mouret, whose dresses have been worn by celebrities such as Halle Berry ( pictured).

RPC highlighted that a large number of takeovers had targeted fashion retailers. A recent example is Ted Baker, which was bought for £211m last month by US firm Authentic Brands Group.