River Island Group takes control of Mint Velvet with £ 100m contract | Business

The family behind the River Island clothing chain has taken control of Mint Velvet, the fashion brand founded by three former Principles executives, as part of an agreement that is expected to bring over 100 million pounds to the company.

Co-founders Peter Davies, Liz Houghton and Lisa Agar-Rea will share a payment of several million pounds from the Lewis Trust Group (LTG) transaction.

This is a second fad for Davies, who had previously rescued and sold Principles and Warehouse, realizing nearly 40 million pounds in three years.

LTG, which also owns stakes in the Everyman film chain and San Francisco-based Dolls Kill, has purchased for the first time a stake in Mint Velvet in 2015. It would have exercised the option to take control of the company last week.

Mint Velvet, specializing in "casual glamor" for the over 30s, was launched at the Houghton kitchen table in 2009 and has been the subject of concessions in House of Fraser.

A spokesman for the Lewis family said, "This investment is a testament to the great trust placed in the company, the brand and the people. The company continues to be managed independently by founders Liz Houghton and Lisa Agar-Rea, who remain invested. "

In April 2018, sales of Saber Retail Fashion, the parent company of Mint Velvet, increased by 15.5% to £ 101m, in 165 outlets, including 40 stand-alone stores. Profits before taxes increased by just over 8% to £ 13.5 million.

The company was a resounding success last year when House of Fraser collapsed in the administration because of more than 2.5 million pounds sterling due to Mint Velvet. The chain of department stores was purchased by Mike Ashley of Sports Direct, but Mint Velvet has since closed about 10 of its 40 House of Fraser dealerships.

Mint Velvet earned a new investment as a series of other brands that lost to the collapse of House of Fraser were put under pressure.

Coast was acquired by a sister company after a pre-pack administration, LK Bennett fell into the administration and Pretty Green is on the edge of the administration while she's looking for a rescue deal.