Eversheds and Dundas & Wilson have scored star roles in the high-profile acquisition of troubled retailer Floors-2-Go from administrators Kroll - a deal set to save more than 200 jobs.
The transaction, which closed earlier this month (15 August), saw Eversheds advise the Hodge brothers, Robert and Richard, on their purchase of the flooring company for an undisclosed sum.
It marks Eversheds' first deal for the brothers, with the national firm winning the work following a competitive tender process.
Birmingham corporate partner James Trevis (pictured), assisted by corporate associate Antony Walsh, advised on the deal after Floors-2-Go - one of the UK's largest flooring and carpeting retailers - went into administration in July. About 52 of the 132 stores were closed after administrators were appointed but the Hodge brothers will now run the remaining stores across England and Wales alongside their existing new venture - FloorMyHome.
Dundas & Wilson corporate recovery partner David Gibson, assisted by associates Craig Barrett (corporate recovery) and Shane Toal (property), advised longstanding client Kroll.
Floors-2-Go's administration comes just 18 months after a £52.4m management buy-out of the company in January 2007 backed by private equity house Alchemy Partners. With the credit crunch affecting the housing market and DIY sales, the management buyout failed to save the company from administration.
The Hodge brothers' acquisition means Floors-2-Go has come full circle, as the brothers founded the company in 1999, before floating it in 2004. They were advised on both the float and the management buyout by DLA Piper.
Trevis told Legal Week: "The retail sector is under great pressure at the moment, and we are seeing a number of corporate failures. This does, however, mean that for entrepreneurs who know their sectors there are some significant opportunities. We hope the Hodge brothers are able to use their knowledge and market insight to turn this company around and preserve jobs."