Venture capital groups could also be interested as could N Brown, the mail order group that made a £500m approach for the company a year ago.One Littlewoods insider said yesterday: “The synergies would be greater with a Bhs deal than with anyone else. And he [Mr Green] made vague noises about a takeover a while ago.” But Mr Green, recently linked with a deal with Woolworths, denied yesterday that he had made any approach to Littlewoods “I haven’t contacted them I’ve never looked at it. At the moment I’m happy with what I’m doing.”Terry Green, the departing Bhs chief executive who is also looking for a deal, said he has not made an enquiry about Littlewoods but did not rule anything out. “I’m looking at lots of things and who knows I might look at this one as well.”However, Mr Green has a 12-month non-compete clause in his contract that would make a bid for Littlewoods difficult.N Brown has made two bids for Littlewoods in the past 10 years but said yesterday that “there has been no further contact since talks broke down last year”. GUS, which owns the Argos stores, could also be interested.If Littlewoods decides to sell its stores it would mark another stage in the gradual dismantling of one of Britain’s biggest business dynasties. Having sold its football pools operation two years ago, the sale of its shops would leave Littlewoods focused solely on its mail order operation. That too has been linked with deals with GUS and N Brown.All the shares in the privately controlled group are held by members of the Liverpool- based Moores family who do not see eye to eye on the future of the group.
The Moores’ bowing out of Littlewoods would be like the Forte family losing their hotels empire and the Barings losing control of the eponymous bank following the Nick Leeson scandal.It would also mark yet another compelling chapter in the tumultuous history of this 79-year-old Liverpool empire.In the past 10 years this business has seen everything: boardroom intrigue, private investigators, takeover bids, management sackings, litigation and family feuds. It has been a corporate soap opera though not quite in the league of Dallas or Dynasty. It has been more like Brookside with bigger houses.These days 40 members of the Moores family own Littlewoods shares. In the past the family has been divided on the future ownership of the business and one Littlewoods expert said yesterday that they would now be keen to do a deal. “If they could find an elegant way out of the business, they would probably take it,” the insider said. “They must be considering how they can spread their investment risk.”However, the stores business may not prove to be very valuable and the family has had a tendency to feel their assets are worth more than the market will pay.
The Littlewoods group reported pre-tax profits of £34.5m on sales of £1.9bn yesterday, compared with a loss of £14.5m the year before. But most of the profits are made by the mail order side of the group. The 179 high street stores, which include the 60 Index catalogue shops, make only “modest” profits on sales of £704m.Much of the value of the business is in the freehold property, which Littlewoods say is worth £250m. Analysts say the division may be worth £250m-£300m, including the property.If Littlewoods is broken up it would be a sad end to the once powerful group founded by the late Sir John Moores. The son of a bricklayer and a mill girl, he established the company in the North-west of England in 1923 and ran it with a ruthless style. The football pools and mail order businesses were solid and cash generative. The high street stores occupied a position in the mass-market alongside C&A and below Marks & Spencer.Sir John died in 1993, aged 97, but none of his children seemed up to the task of succeeding him.
His daughter, Lady Grantchester became the family matriarch and had a seat on the board. Peter, one of his sons, was made chairman, but performed poorly.Beset by infighting, bid battles and poor management the financial performance of the business suffered. Other members, such as David Moores, concentrated on outside interests – a controlling shareholding in Liverpool Football Club for example.The family brought in external management, led by Sir Desmond Pitcher. This steadied the ship for a while but disruption and scandal was just around the corner.
