The Works bucks the high street gloom with £100m share listing
THE boss of bargain retailer The Works insisted his company was defying the gloom engulfing high streets as it embarked on a £100m listing just weeks after fellow discounter Poundworld fell into administration.
Kevin Keaney said the business was aiming to open 50 stores per year “for the foreseeable future” as it takes advantage of a slump in retail rents and diminishing competition for sites.
The chain has opened 134 stores and concessions in the past three years, taking the total to 447, and has plans for as many as 1,000.
The flotation caps off a dramatic turnaround for the business, which was bought out of administration in the 2008 financial crisis by Endless.
The company placed 41m shares at 160p apiece with investors yesterday, valuing it at £100m and raising £65m, some £37m of which will go to turnaround firm Endless and the management. The rest will repay debt. Unconditional trading will start on Thursday. The float comes at a difficult time for retailers as costs soar and consumer confidence has slumped.
The budget end of the market has not been immune from the downturn – Poundworld fell into administration last month, risking 5,000 jobs.
Mr Keaney said The Works had an edge on other discounters because of its eclectic range, an “Aladdin’s cave” of toys, gifts, books, and arts and crafts materials.
“Unlike some of the bigger hard discounters, we have stayed away from grocery products so our range is more unique,” he said.
While many budget chains have eschewed e-commerce to keep costs low, Mr Keaney said click and collect was the fastestgrowing part of its business.