Sun European takes struggling Alexon private

The deal is believed to be valued at around £19m. Axon has faced difficult trading conditions over the past few years and funding issues became particularly acute in recent weeks. The womenswear company put itself up for sale over the summer, but a takeover could not then be achieved.

Listing and trading of Axon shares on the London Stock Exchange was suspended on 29 September and KPMG were appointed as administrators. Sufficient interest from potential buyers enabled KPMG to avoid a full operational administration via a pre-pack deal, which the firm said helped save in excess of 2,700 jobs.

Sun first met the management on 20 September – it completed all diligence processes and negotiated the transaction in just nine days.

Previous shareholders are said to have been wiped out of the deal entirely – trading was suspended at 2.8p, giving Axon a £4.16m market cap. Barclays, the company's lender, is reportedly set to be repaid in full on a £15m facility; unsecured creditors are understood to be sharing £4m, a third of what they were originally owed.

Sun European stated it had been impressed by Axon's existing turnaround strategy, which enabled it to return to profitablity following a tough 2009. The GP provided extra capital as part of the deal to sustain Axon's recovery.

Axon will now look to restructure its store portfolio, roll out new retail environments and develop its e-commerce business.

Company
Established in 1929, Axon is a Luton-based womenswear clothing retailer, focused on mature customers. It operates from 990 outlets in the UK and continental Europe, and employs around 2,700 staff.

Axon posted a £135.9m turnover for 2010, down from £153.4m the previous year. Profit before tax, however, improved to £900,000, compared to a £14.3m loss in 2009.

People
Paul Daccus led the deal for Sun European. Jane McNally is CEO of Alexon. Will Wright, Colin Haig and Howard Smith of KPMG acted as administrators for the company prior to the sale.

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