Silverfleet Capital

OFFICE

Business overview

OFFICE is the UK’s leading young fashion footwear retailer, offering a product range that is mid-priced and affordable. The business sells men’s, women’s and sports footwear and has a broad range of both third party brands such as “Converse”, “UGG”, “Adidas”, “Nike”, “Vans” and “Supra” which it sells alongside its own brands - “OFFICE”, “Ffor” and “Poste”.

OFFICE earns its credibility by consistently identifying key fashion trends and making sure that the ranges it retails anticipate the demands of the company’s target market of 15-35 year olds.

OFFICE first opened in 1981 and at the date of our investment had grown to 75 stand-alone stores in the United Kingdom and the Republic of Ireland and 46 concessions in House of Fraser, Topshop (including New York), Harvey Nichols and Selfridges. In addition it has a high-growth internet business.

Investment rationale

OFFICE is a substantial business, with turnover in excess of £150 million, and an excellent market position. The business’s range of both third party brands and own brands give it a defensible offering, and also good profit margins.

Value creation

Following our December 2010 buyout, as well as continuing strong growth from its existing stores, we see considerable further rollout opportunity in addition to significant potential from an enhanced web-shop. Further international expansion is also a real possibility at the right time, based on the strong relationships that OFFICE has with its key suppliers and building on our own extensive international experience.