Henri Lloyd, the British brand of sailing and lifestyle apparel, has been bought out of administration (a British form of receivership) by a subsidiary of Aligro Group, a Swedish investment firm, in a deal that entails 128 job losses as well as the closure of four stores, concessions and the brand's head office in Manchester.
Henri Lloyd came under pressure due to the recent sluggishness in British consumer spending and the rise of online retailing, among other issues. To remain afloat, it went through cost reductions and the divestment of various assets.
Administrators were appointed at Henri Lloyd on June 8 and three days later they confirmed the sale of five stores and some inventories and other assets to Aligro U.K. The Aligro Group had already become one of Henri Lloyd's lenders and it acquired rights to the brand and trademarks in March.
The Swedish firm is headed by Hans Eckerström, a private investor and entrepreneur who has been previously a partner and employee at NC Advisory, adviser to Nordic Capital's funds. Eckerström is the chairman of Profoto and Nobia, a listed kitchen specialist, and a director of the Thule Group. Magnus Liljebald, a seasoned manager in the sports and outdoor industry, has been appointed as chief executive of Aligro Group. He previously worked as the CEO of Sportmanship, the former distributor of Henri Lloyd in Sweden. His other former employers include Peak Performance and Stadium, and he most recently co-founded and led Wacay, a Swedish brand of leisure wear.
Aligro said it made significant financial commitments to revitalize the brand after it started getting involved in March. It formed a brand team headed by Liljeblad, working with specialists in global expansion, product design and online sales.
The new owners are set to continue operating five Henri LLoyd stores and they will employ six people for central functions, meaning that a total of 44 employees will remain with the company. The layoffs concern employees at the brand's head office, at 20 House of Fraser concessions and at four other stores. Henri Lloyd reported sales of £17.7 million (€20.0m-$23.2m) for the year to the start of April 2017, generating a gross profit of £6.1 million (€6.9m-$8.0m) and an operating profit of £247,688.
Henri Lloyd was launched in 1963 and named after its two founders, Henri Strzelcki and Angus Lloyd. Musto, another British brand of sailing apparel, was sold to Helly Hansen last year.
