Asset-based lender funds ‘significant turnaround’ at fashion group

Secure Trust Bank Commercial Finance has provided Calvetron Style Holdings, a newly established company, with a £12.5m asset-based lending facility to support investors following a pre-pack deal that saved more than 1,700 jobs.

Established in 1972, Shoreditch-based Style Group Brands operated a cluster of womenswear brands, including Jacques Vert, Precis Petite, Eastex and Windsmoor. The company traded from over 1,850 outlets, mainly consisting of in-store retail concessions in department stores such as House of Fraser and Debenhams.

In June 2017, the business was acquired by Calvetron Style Holdings, a recently formed group of retail investors that includes former Jaeger owner Harold Tillman together with Sandeep Vyas and Haseeb Aziz.

The finance package provided by Secure Trust Bank Commercial Finance consisted of a revolving inventory facility of £8m and receivables facility of £7m within an overall facility limit of £12.5m. The funding was used to assist the initial acquisition, and will provide enhanced cashflow as the company looks to invest heavily in its product range in the coming months.

Sean Powell, national sales director at Secure Trust Bank Commercial Finance, said:

“To be able to complete such a sizable facility within the retail sector supporting both the initial investment and ongoing growth of the business is extremely pleasing. It not only demonstrates the size and complex nature of facilities that we are now transacting, but with a turnaround time of one week it once again demonstrates the short timeframes in which we are able to operate.

“Following the acquisition, Style Group Brands has undergone a significant transformation, and now has the potential to become a conglomerate fashion group with a global reach. The company already has some household name brands in its portfolio, and with the direction of the team at Calvetron, we are confident it will continue to boost its profile both at home and abroad.”

Mick Welden, CFO at BREAL Group, which advised on the transaction, said:

“The team at Secure Trust Bank were able to identify the needs of the business and provide funding that will help stabilise and enable future growth. The speed of delivery was particularly impressive, as given the nature of the deal, there was pressure to create a facility with the right structure in a short time frame. The team’s efforts have helped us secure the jobs of more than 1,700 people, as well as putting us in a strong position to achieve future growth objectives.”