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Discount bookchain The Works is soon to be touted for sale at roughly £80m, following a major restructure that has seen it cut costs and go into profit, the Independent reports.
Leeds-based private equity firm Endless is poised to appoint the accountancy firm KPMG to run a sale of the retailer, likely to take place in the first half of next year, the paper said.
Endless bought The Works from administration in May 2008 for roughly £17m, and has cut costs and headcount, particularly at the head office, improved margins by sourcing products from the Far East, improved in-store merchandising and returned the chain to its discount roots.
The Works is thought to have delivered (EBITDA) earnings before interest, tax, depreciation and amortisation of £10m for the year to 30th April 2010. Industry sources put a potential price tag on the retailer of about £80m.
Discussions are at an advanced stage, and the appointment of the accountancy firm is expected soon. Both Endless and KPMG declined to comment.