Project Description

Footwear wholesaler, D. Jacobson & Sons Limited, secures a £7 million ABL facility from Independent Growth Finance (IGF)

Independent Growth Finance

Deal type: Financing
Industry Sector: Retail
Completion date: March 2021
Adviser(s): Independent Growth Finance 

Footwear wholesaler, D. Jacobson & Sons Limited, secures a £7 million ABL facility from Independent Growth Finance (IGF).As a branded operation the company saw large opportunities for growth within their portfolio. The Lancashire based seller required additional working capital resource to expand into new international markets and invest in online technology to support progression during the pandemic and beyond.

Jacobson Group’s expertise focuses on all aspects of sourcing footwear to meet the ever-evolving needs of the marketplace. A third-generation family business, Jacobson was incorporated in 1982 and has a rich history spanning over 80 years. The company holds an enviable brand portfolio that resonates with a broad mix of consumer profiles, including retail partners such John Lewis, Urban Outfitters Group, Next and Amazon. This enables them to deliver footwear solutions to various levels of retail on a global scale.  

No footfall for retailers

Due to the COVID-19 pandemic and the subsequent closure of non-essential retail, the trading environment became very challenging. KPMG were engaged by Jacobson to support them in refinancing their existing asset based lending facilities, to help generate additional working capital and fund future growth. Jacobson were in the market for a new lender who was comfortable with the sector and the challenges it presents. IGF was one of several lenders approached by KPMG and was the best fit for the company. Funds were raised from assets within the business, including invoices, stock and property.

Richard Spielbichler, ABL Director at IGF, commented, “We really took the time to understand both the business and the individuals within it. This helped us to create and present a well-balanced and workable financial solution for Jacobson and demonstrate our commitment to supporting them through transition and with their growth aspirations.

We’re delighted to be supporting such a long-established and respected business in the North West of England.”

Haroon Ahmed, enterprise financing offering lead at KPMG added, “Considering the impact of the COVID-19 pandemic, the company was entering a refinancing exercise against a very challenging backdrop. A number of lenders were closed to new business and due diligence requirements in the period had increased materially. Working together with IGF, we were able to deliver a funding solution to support Jacobson’s long term growth strategy.”

Putting the best foot forward online

Gary Shutt, Financial Director at Jacobson Group, commented, “IGF showed strong appetite for the sector and the business. Their streamlined management structure really stood out from other lenders. We believe this will allow us to remain responsive and adaptable to the ever changing demands presented in today’s international market. We look forward to working with IGF.”

With an increasingly digital world, the online retail space presents a great opportunity for growth. This asset based lending facility will give Jacobson the ability to invest in new ecommerce platforms to help support progression. As well as supporting with global expansion and entry into new international markets.

Independent Growth Finance