Sun European Buys Distressed Womenswear Retailer Alexon

Investment firm Sun European Partners Thursday said it had bought Alexon Group PLC, a U.K.-based womenswear retailer following a rapid sale process triggered by the company's third profit warning in six months.

Financial details of the transaction weren't disclosed.

Founded in 1929, Alexon sells its mainly mature womenswear from 990 outlets across the U.K. and Europe. It has seven brands including Kaliko, Dash and Eastex which it also retails online.

The company hired KPMG in August after it reported a 9% drop in sales and net debt of GBP15 million. According to press reports, Alexon's lender Barclays PLC (BCS) was unable to extend the size of its banking facility and the company would have been unable to pay the quarterly rent bill on its shops, which falls due this week.

"We are extremely pleased to have a new owner which gives our business the more appropriate capital structure that we have been seeking," said Jane McNally, Chief Executive Officer of Alexon.

"The capital investment the Sun European Partners affiliate will be making in Alexon as part of this transaction will enable us to invest further in our turnaround strategy which is focused on restructuring our store portfolio, the roll out of new retail environments and further acceleration of our e-commerce business," she added.

The deal is expected to preserve over 2,700 jobs.

-By Marietta Cauchi, Dow Jones Newswires; [phone]; [e-mail]