Value chain books its expansion with float

The value books, gifts and toys chain, which operates from 447 stores, is defying wider retail gloom and sees up to 1,000 potential locations across the UK and Ireland.

Chief executive Kevin Keaney, who has led the company for six years, described its turnaround a decade since falling into administration under previous ownership as a “fantastic phoenix from the flames”.

It is targeting 50 store openings a year, bucking a trend which has seen chains such as Toys R Us disappear and the likes of New Look, Carpetright and House of Fraser scale back presence.

Fellow discounter Poundworld, which collapsed into administration last month, yesterday said a further 80 stores would close with the loss of 1,024 jobs, on top of the 25 closures announced earlier this week with 242 redundancies.

Administrators hope to sell part or parts of the business. It employed 5,100 people when they were appointed.

The Works’ revival has been achieved under the ownership of private equity investor Endless, which is selling about 75 per cent of its stake and will retain a 9.8 per cent holding.

The float will raise £28.5million for the company, which will be used to repay debt.

Keaney, whose experienced team includes chairman Dean Hoyle, the founder of Card Factory, said the business competes with the likes of WH Smith, Ryman and Hobbycraft.

He said: “We really are bucking the retail trend. Endless have allowed me to plough every penny back in to the business and it is a very exciting time. We have a niche family-friendly and multi channel proposition that no other discount retailer has been able to do.

“We have a very successful loyalty programme and we are driving footfall to our stores.

“There has never been a better time to roll out stores. We are able to get property deals that have never existed before. There is a really fantastic pipeline.”