Simply Be and JD Williams fashion retailer N Brown has agreed a £191 million takeover by Joshua Alliance, whose family built up the home shopping group in the 1960s.
Mr Alliance, who is a shareholder and non-executive director of N Brown, will pay 40p in cash for each share of N Brown that he does not already own.
Mr Alliance already owns 6.6% of N Brown while the others member of the Alliance family – including former executive chairman Lord David Alliance, who built up N Brown up in the 1960s – own a controlling 53.4% stake.
Mike Ashley’s Frasers Group, which owns 20.3% of N Brown, has said it will vote in favour of the deal.
Joshua Alliance said N Brown would be better off in private hands as, due to its current shareholder ownership, it is “not benefiting from being listed on the AIM market, whilst having to bear significant costs associated with its listing”.
He said: “My family have been supporters of N Brown for over half a century, providing capital and having been involved in the strategic leadership of the business.
“I am delighted to continue that history.
“This transaction will support N Brown in accelerating its long-term growth potential and provide, where needed, access to additional capital, expertise and resource to accelerate the longer-term potential of the business.
“In the business’s current cycle of evolution, we will be able to achieve this growth potential more successfully away from the public markets.”
Under the deal, shareholders may also choose to receive one unlisted share in the new privately owned company for each N Brown share instead of cash.
N Brown’s current interim chairman and chief executive Steve Johnson and chief financial officer Dominic Appleton had agreed to take up the offer of shares in the new group.
Mr Johnson said: “N Brown continues to consistently serve its loyal and otherwise underserved customers, with exciting long-term prospects for the business.
“We continue to deliver on our strategy for growth, enabled by a sustainable and efficient operating model, and supporting our people and talent.”
He added the takeover “will enable us to accelerate that strategy for the benefit of all our stakeholders”.
The Alliance family have been involved with Manchester-headquartered N Brown group since the 1960s, with the retailer starting life when Lord Alliance bought retailer JD Williams in 1963.
N Brown – which also owns brands such as Jacamo – recently revealed it swung to a £200,000 first half profit against losses of £2.8 million-a-year earlier thanks to cost cutting and a focus on more profitable sales.
But product revenues dropped 7.9% to £172.7 million as consumer spending remained under pressure and trading was affected by weather.