Insider Media Limited

Who?

Findel, the group specialising in home shopping and the distribution of educational and medical supplies.

Did what?

Has sold loss-making music and DVD retailer Webb to Endless for £1 just a year after buying the Burton-on-Trent company for £3.

What does this mean?

In the second half of last year Webb made a loss of £400,000. Webb comprises two main trading companies, Choices UK and Webb Ivory Burton. 

Who advised?

Endless was advised by the London office of Ernst & Young and the Leeds office of Addleshaw Goddard. Findel was advised by the London office of KPMG.

Insider comment:

Findel couldn't make Webb profitable, losing £400,000 in the last year and seemingly opting to cut its losses. A statement from the company read that it would “now be able fully to focus on its key businesses”, but it’s also worth noting that Findel feels the industry picture is far different than one year ago. It said the sale “will also remove the working capital requirement of Webb of between £15m and £20m, which has increased significantly recently as available trade credit reduced in the wake of high profile administrations in the sector.”

Endless, however, is a turnaround specialist of some note, not just for winning the Turnaround/Rescue Deal of the Year award at the Insider Dealmakers Awards Yorkshire 2009 and being shortlisted for other prizes. It will be interesting to watch how Webb fares under Endless’ guidance, with the company already pledging up to £15m of investment and working capital.

Mathew Deering, investment director at Endless, said: “The funding package we are providing will allow the business to return to offering a strong service proposition to its existing customers and will provide a platform to exploit some exciting new growth opportunities.”