Cotton Traders sold, eyes expansion into new territories

By

Barbara Santamaria

Published
May 28, 2018

British casual clothing specialist Cotton Traders has sold a majority stake in the business to private equity firm CorpAcq, in a deal that will help it expand as it hopes to reach its ambition of becoming “the best multichannel retailer for the grown-up generation”.

The acquisition comes after the Altrincham-based company hit a milestone in 2017, reporting the best financial results in its 30-year history. With 120 bricks-and-mortar stores in the UK and an online site delivering to 25 countries, the retailer increased turnover by 5.5% to £86.7m, whilst operating profit rose 5.2% to £8.1m.

The investment from CorpAcq will be used to develop the brand’s multichannel offer across home shopping, online, stores and its contact centre, as well as launch in new overseas territories and invest in new product ranges.

Simon Orange, CorpAcq’s founder and chairman, said: “We have a very strong and positive relationship with the owners of Cotton Traders. We share the same values and outlook, and we are confident that this deal will be of huge benefit to the brand, all those working within the company, and to CorpAcq.”

Cotton Traders was launched by former England rugby union team captains Fran Cotton and Steve Smith in 1987. Its range of casual, leisurewear items attracted the interest of Next, which bought a stake in the business in 1997. Next remained a shareholder in Cotton Traders until a management buyout in 2015.

Cotton Traders co-founder Fran Cotton said: “It has been a fantastic journey for Steve and I to take Cotton Traders to this point over the last 30 years, and I must thank all of our amazing staff who make the brand what it is today. I am excited by our future plans, and look forward to working with CorpAcq on building the business in the years ahead.”