Pet food and accessories retailer secures £5m funding to roll out new stores
Secure Trust Bank Commercial Finance has provided a £5m asset based lending facility to Kennelpak Ltd, an established retailer and distributor of high quality pet food and accessories.
The Nottingham-based business was established in 1974, and has since grown to become a key partner to the pet product industry and a trusted ‘go to’ expert for its retail customer base. From its 80,000 sq ft. warehouse, Kennelpak distributes pet food and products under a wide range of own and exclusively licensed brands including Collards, Taste of the Wild, Yakers and Whimzees.
Kennelpak also operates a number of retail stores under the Kennelgate brand. The firm opened its first store in 1983, and has since grown its portfolio to 20 stores currently clustered in and around the Midlands. Across both its stores and warehouse, the company currently employs circa 275 staff.
The family owned business was acquired by Enact, the SME fund managed by Endless LLP in July 2017, and is now undergoing a programme of investment under the implementation of its value creation plan. The funding provided by Secure Trust Bank Commercial Finance, which includes receivables, inventory and property lines, will support the further growth of the company as it plans to open 20 new Kennelgate stores over the next three years. In addition to this, Kennelgate is enhancing the services offering in its existing stores with the roll out of additional wash and grooming stations across the estate. It will also look to rebrand and enhance its e-commerce channel, as it looks to grow its ‘click and collect’ service and geographical reach.
Chris Cormack, investment director at Enact, said:
“Kennelpak has a great reputation for providing high quality products to both consumers and retailers. Our future growth strategy is underpinned by the expansion of our stores and diversification into new revenue channels as well as geographies, so we needed to source a finance facility to support this. This funding will enable the addition of 20 new stores, as well as a repositioning of our strategic offering, which will certainly place Kennelpak in a position for further growth.
“Endless has worked with Secure Trust Bank on a number of transactions in the past, and we’ve been impressed by the team’s can-do attitude and speed of delivery. We’re looking forward to continuing our work with the team, as we embark on the implementation of our value creation plan.”
David Parsons, regional MD, Midlands, said:
“We are delighted to be working with Endless on another of its investments, and we were particularly impressed with the sheer caliber of the team which they have brought together. The management team at Kennelpak have huge ambitions for the future, with desires to challenge its competitors in the market – something we at Secure Trust Bank can certainly identify with.
“The business plan covers off all avenues for growth, with a clear strategy for national expansion, as well as improvements to its website. E-commerce has become a huge focus in retail, as more stores are adapting to the ever changing needs of the consumer. This, alongside new stores, will certainly boost Kennelpak’s market share and help it compete with other well-established pet products brands.”