Landmark – the Dubai retailer associated with Baugur’s potential bid for US department store business Saks – disclosed a 7 per cent stake in Debenhams that day.
As Retail Week reported last Friday, speculation has been mounting that a bid for Debenhams, led by an overseas retailer, was on the cards. Landmark’s declaration of its holding brought the likelihood of corporate action a step closer.
Many in the UK will be unfamiliar with Landmark, but it has serious firepower and has been interested in developing a UK presence for some time.
Headed by entrepreneur Micky Jagtiani, Landmark has grown since 1973 from a single shop in Bahrain to a 600-store powerhouse, with a presence in categories ranging from apparel to furniture and electronics.
The retailer operates in 10 countries and has established a European bridgehead in Spain, where it has a handful of shoe shops. In the past couple of years, it is thought to have been a potential bidder for Debenhams before its IPO and for New Look.
Landmark may well view low retail valuations in the wake of the trading downturn and credit crunch as a prime opportunity to snap up a bargain and extend its international reach.
Its stated ambition is to more than double retail space between 2006 and 2009 to 12.5 million sq ft and increase the number of countries where it is present from 10 to 15.
While domestic investors desert the retail sector, money elsewhere is looking for a home. A big UK deal or two could help Landmark live up to its name.
Moss Bros stakebuilding
Intriguing that Laura Ashley has been stakebuilding in Moss Bros through subsidiary Bagleys Investments. Laura Ashley’s buying began last year and has continued since last week’s revelation that Baugur may bid for menswear specialist Moss Bros.
Given that Laura Ashley’s recent trading has been uninspiring – like-for-likes fell 10.8 per cent in the first 19 weeks of the second half – maybe directors see an opportunity to make money as a punter, rather than as a retailer. Then again, since it has been buying Moss Bros shares close to the top, maybe not.
George MacDonald is deputy editor of Retail Week
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