We’ve heard a lot about Mountain Warehouse’s growth ambitions in recent periods and its latest move shows it’s targeting not just the UK but the world’s biggest outdoor gear market — the US.
It has added to its existing US ops, buying US-based retailer Eastern Mountain Sports (EMS) for £7.6 million ($10 million), rescuing it from Chapter 11 bankruptcy protection, America’s equivalent of an administration filing. Until 2022, EMS had been owned by the UK’s Frasers Group.
Mountain warehouse founder and CEO Mark Neale said he’s been eyeing the business for some time.
The purchase price includes £3.8 million ($5 million) being paid for EMS’s brand, website and seven profitable stores, with the remaining £3.8 million paid for its other assets. Some 100 jobs at the business have been saved.
The company plans to operate its new buy as a standalone brand and said it may expand into Canada in the near future, which would clearly make commercial sense. Interestingly it also said it may target Europe with it too.
Neale said the EMS brand “has a great heritage and DNA, and resonates with huge numbers of long-standing customers. We will also continue to work with the highest-quality and best-known outdoor brands in the world to stabilise and then grow the business.
“We are convinced that there is a great business here, with a tremendous pedigree, and passionate people who can help us understand the market even better and create a bright future.”
That may seem like a big task given the problems EMS has had in recent years, with multiple Chapter 11 filings. But Neale undeniably knows how to build a strong business. He took Mountain Warehouse from a single store in Swindon founded 27 years ago to a major UK and international chain, and his earlier acquisition of the Animal brand appears to have paid off too.
Mountain Warehouse has been in the US for over a decade and its last set of results showed the US ops adding £65 million to its total sales.
Across its UK and international business it employs over 3,700 people, with revenues in that latest year rising 4% to £386 million. Pre-tax profits were £26.2 million.
As well as its UK and US stores, it operates spaces in Germany, the Netherlands and Australia and next year plans to add another 50 locations to its current 370.
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