Whittard of Chelsea sold to private equity firm

The tea and coffee retailer, Whittard of Chelsea, has been sold to a private equity firm after going into administration.

Administrators Ernst & Young said the company has been sold to EPIC private equity partners, however the sum was not disclosed.

Stores are to remain open and the business will continue to operate as a going concern, said Ernst & Young.

The group has been hit by poor sales due to the economic downturn as shoppers opt for cheaper alternatives.

The group, which sells tea, coffee and crockery, was founded as a family business by Walter Whittard in 1886, trading at 165 Fleet Street, London. The company grew at a rapid pace during the 1980s and 1990s, both in the UK and overseas, with stores opening in Dubai, Abu Dhabi, Kuwait, Singapore, South Africa, Chile and the US.

Richard Spielgelberg, a spokesperson for the purchasers, said that the private equity firm had acted on behalf of a group of institutional investors in the UK.

Retailers have been anticipating their worst Christmas period for years and have been tempting shoppers with discount days and December sales.

Last week, a major icon of the British High Street, Woolworths announced it will close all its 800-plus stores over the next few weeks with the loss of 30,000 jobs.

Furniture giant, MFI, has also gone bust after it could not compete with the likes of Ikea.

Over the weekend, insolvency expert Begbies Traynor warned that more retail chains will go bust before the middle of January.

Begbies said it would not be surprised if between 10 and 15 well-known chains did not make it beyond the festive period.

Should its warning ring true, then more retail workers will face 2009 jobless.

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