3i has sold fashion retailer Hobbs to the Foschini Group for a consideration believed to be in the region of £80 million. Foschini already owns both Phase Eight and Whistles which sell to a similar demographic.
Hobbs has been headed by Meg Lustman for the last few years during which time it has been revived and achieved £120 million sales for the year to January. It sells via its own retail chain and and concessions in the UK as well as online. Hobbs also has a good following overseas, including in the USA where in addition to selling online it has some stores and is stocked by major department stores including Bloomingdales.
Commenting on the acquisition, The Foschini Group’s UK CEO Ben Barnett said “Hobbs is a strong British brand with rich design heritage. Meg Lustman and her team have successfully re-positioned and reinvigorated the brand, offering an excellent platform for further growth. We share their ambitions, not only in terms of maximising the success of their well established UK presence, but also in their strategic approach towards leveraging the international appeal of the brand, via their physical store growth, carefully aligned concession partners and evolving eCommerce proposition.”
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