Kitchenware retailer Lakeland explores sale as it battles cost pressures

Kitchenware firm Lakeland is considering putting itself up for a sale in a bid to secure its future amid a “challenging” environment for retailers.

The company is thought to have appointed financial advisers from consultancy Teneo to explore appetite among speculative buyers, as first reported in Sky News.

A spokesperson for the retailer that it was looking at different options having come under pressure from rising costs.

“Lakeland is one of the UK’s most loved and trusted brands,” they said.

“In response to the challenging retail environment, we are considering a number of options to ensure a sustainable and long-term capital structure, which builds on our 60-year heritage as one of the UK’s most innovative homeware retailers.”

The Windermere-based company sells kitchenware like air fryers and food processors and homeware products from 59 outlets across the UK, with about 1,000 staff.

But it has flagged financial pressures in recent years.

It reported a pre-tax loss of £2 million for 2023 in its most recent published accounts, saying it entered the year “facing the most challenging economic conditions for several decades”.

Higher inflation leading to price rises had flattened demand for many of its product categories, the company said.

It nevertheless generated sales of £153 million, broadly flat compared with the previous year.

The accounts show the company has a credit facility with HSBC which is not due to expire until 2028.

Teneo declined to comment on the reports.