Sears plc

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Sears plc
Company typeConglomerate
Industry Retail
Founded1891;133 years ago (1891)
Defunct1999;25 years ago (1999)
FateAcquired by Philip Green
Successor Arcadia Group
Headquarters London, UK
Key people
 Charles Clore (Chairman)
Number of employees
65,000

Sears plc was a large British-based conglomerate. The company was listed on the London Stock Exchange and was once a constituent of the FTSE 100 Index. It was acquired by Charles Clore in the 1950s who expanded the company to be one of the largest retailers in Britain. It was acquired by Philip Green in 1999 who oversaw the break up of the group.

Contents

History

The business was founded by John and William Sears in 1891 and initially traded as bootmakers under the name of Trueform. [1] Despite the company using the Sears name, it has no relations with Chicago, Illinois-based Sears Roebuck and Company and its 2005-2019 parent company, Hoffman Estates, Illinois-based Sears Holdings Corporation.

In 1929 Sears acquired footwear retailers Freeman, Hardy and Willis. [2]

Acquisition by Charles Clore

The business was acquired by Charles Clore in 1953 for £4 million, by which time it had over 900 shops. [1] [3] In 1954, Sears bought Haverton Holdings for £3.5 million, which owned Furness Shipbuilding Company and a controlling interest in listed hosiery knitting machine manufacturer, Bentley Engineering, in which Clore was a board member. [3] [4] He renamed the group Sears Holdings in 1955 and went on to buy the Manfield and Dolcis shoe shop chains the following year, bringing the total number of shops up to almost 1,500. [1] [3]

Creation of British Shoe Corporation and diversification

In the late 1950s Clore consolidated all the shoe brands Sears had acquired under the name British Shoe Corporation [1] under which name it also bought the recently merged Saxone Lilley & Skinner, another shoe shop chain with over 500 shops, in 1962. [5] [3] In June 1959, the group acquired the remainder of the Scottish Motor Traction Company for £1.7 million. In August 1959, after already acquiring a controlling interest, they increased their ownership in Mappin & Webb jewelers to 98% for £3 million. In October 1959, Mappin & Webb bought Garrard & Co, the Crown Jeweller, for almost £1 million. [6] The same year, the group also tried to acquire brewer Watney Mann for £20 million. [3] By the year-end, the group divided itself into four sub-divisions (British Shoe Corporation; Engineering; Motor distribution, and Mappin and Webb). [6]

In 1964, the group acquired US linen hire and industrial laundry, Consolidated Industries, which it renamed Sears Industries. Sears Industries later acquired US knitwear manufacturer, Highlander. [3]

Purchase of Lewis's department stores and Selfridges

Sears decided to invest in department stores in 1965 acquiring Lewis's Investment Trust which itself controlled Selfridges for £63 million. [1] [3] In 1966, Selfridges launched the Miss Selfridge department, which subsequently expanded to a store chain in its own right. [7]

Following large losses, in October 1968, Clore sold the Furness Shipbuilding yard to the Swan Hunter group for £2.5 million, retaining a small shareholding in Swan Hunter. [8] [3]

The company diversified again in 1971, buying William Hill, a chain of bookmakers. They fully acquired Mappin & Webb in 1973. [1] [9] They later acquired 20% of Asprey & Co. [10] [11]

In 1973, a financial services arm of Selfridges was created which eventually became SearsCard, with its primary function to provide store card facilities for retail companies within the Sears Group.

Housebuilding and retirement of Clore

In January 1975, the group was made up of the following divisions: Footwear retailers and manufacturers (British Shoe Corporation, now also including Curtess); Departmental stores (Selfridges, Miss Selfridge, Lewis's and Robinson & Cleaver); Engineering; Motor vehicle sales and service (SMT Sales and Service, Ritchies, Shaw & Kilburn, Gilbert Rice); Jewellery retailers (Mappin & Webb, Garrard & Co, Arthur Conley & Son) and miscellaneous (Liverpool bakers S Reece & Sons); Licensed betting offices (William Hill); Linen hire and industrial laundries (Sears Industries) and knitwear manufacture (Highlander). The group also had a 20-30% interest in the Freemans mail order business and a 6% interest in Swan Hunter. They also acquired at the year end housebuilder Galliford Estates. [12]

Clore retired as chairman in 1976 and was replaced by solicitor Leonard Sainer. [3]

Sports and Leisure

Sears moved into the sports and leisure market 1978, buying Olympus Sports.

In 1980, they acquired clothing retailer Wallis and US-based Butler Shoe Corporation in 1981. They sold Sears Industries in January 1982. [11] In 1982, jewelers Conley were renamed Walker & Hall and in 1983, Sears acquired a 20% interest in Central Independent Television. [11]

In 1986 it acquired Blacks Leisure Group for £3.3 million [13] but the transaction did not complete.[ citation needed ]

In June 1990, they acquired Astral Sports & Leisure from House of Fraser for £9 million and renamed most stores as Olympus Sports, which by then was the largest sports clothing and footwear retailer in the UK.

Men's retail

By 1985, Sears was Britain's largest shoe retailer. [14] Foster Brothers Clothing, which owned Adams Childrenswear and Millets, were acquired in 1985. [15] [3] The same year the company was renamed Sears plc when it had the following brands: Fosters; Wallis; Selfridges; William Hill; Olympus Sports; Saxone; Garrard; Roland Cartier; Mappin & Webb; SMT; Adams; Shaw & Kilburn; Freeman Hardy Willis; Dolcis; Gilbert Rice; Miss Erika; Miss Selfridge; Butler; Galliford; Trueform; Lilley & Skinner; Manfield; Lewis's; Curtess; and Millets. [10]

In April 1986, it supported a management buyout of Mallett Antiques, investing £6 million for a 50% stake but reducing it to 26% by the listing of the company in March 1987. [16]

In July 1987, menswear retailer Horne Brothers was acquired for £34 million. [17]

Freemans catalogue

In 1988 Freemans was fully acquired by Sears for £480 million, [17] turning it into one of the country's largest retail organisations. It also meant that Freemans could now easily source and stock popular high street brands and promote them in its catalogue. [3]

Disinvestments

In 1986 and 1987, the group restructured and closed or disposed the remaining engineering businesses and sold off the motor group to Lex Services for £86 million. [16] It also sold the investment in Central Independent Television in 1986. [16]

The Lewis's department store business and the Butler group were sold in 1988, although the company retained ownership of the Lewis stores in Glasgow and Hanley. [3] [17] In December 1988, the group disposed of William Hill for £331 million and in 1989 the investment in Mallett Antiques was disposed. [18] They announced in October 1989 a withdrawal from housebuilding and they also started to dispose of some of the group's property interests. [19]

In July 1990, Sears sold Mappin & Webb and Garrard to Asprey plc in exchange for an increased stake in Asprey, giving them a 38.5% interest in the expanded group. [19]

In May 1992, the group decided to remove themselves from menswear retail sector and sold Fosters in September 1992. [20] In April 1993, it finally left the housebuilding sector with the sale of Galliford. [20]

It acquired Richard Shops in October 1992. [21]

As at April 1995, the company was FTSE 100 listed.

In August 1995, it sold Freeman Hardy Willis, Manfield and True Form to entrepreneur Stephen Hinchliffe and his business Facia, [22] and in October 1995, sold Olympus Sports. [23]

By 1996, the group had the following divisions: Footwear (Shoe Express, Shoe City, Saxone, Dolcis, Curtess, Roland Cartier, Cable & Co, Hush Puppies, Lilley & Skinner); Home Shopping (Freemans); Selfridges; Sears Clothing (Richards, Wallis, Warehouse, Miss Selfridge, Adams Childrenswear, The Outfit); Sears Group Properties (including The Selfridges Hotel, Part ownership of The St. Enoch Shopping Centre in Glasgow, 3,000 retail shops being mostly leasehold with a few freehold jewels such as 190 Oxford Street and 330 Oxford Street known as the Top Shop flagship store.[ citation needed ]); SearsCard and Sears Retail Services. [23]

Break up of the British Shoe Corporation

In February 1996 the group also sold Saxone and Curtess to Facia. [24] [22] Soon after, the Facia group collapsed, and Sears took back the leases for 380 stores that they had sold. [25] In August 1996, the Hush Puppies retail business was sold to Stylo plc and the wholesale business to Wolverine World Wide. [26] The remaining parts of British Shoe Corporation were sold by early 1998, at an accounting loss of £150 million. [27] In 1997, the shoes concession business was sold to Nine West for £9 million; Dolcis was sold to the Alexon Group; Shoe Express was sold to a consortium headed by Philip Green; Shoe City to Belgium group Bretano; and finally Cable & Co to Nine West. [28]

Millets was sold in March 1996, ending the Sports & Leisure division [23] and Selfridges was demerged in July 1998. [29]

Acquisition by Philip Green

Sears plc was acquired by January Investments on behalf of Green in January 1999 for £548 million. [30] The company delisted from the London Stock Exchange in March 1999 and re-registred as a private company (Sears Limited) on 12 April 1999. [29] Following the sale, Freemans plc and Creation Financial Services (formerly SearsCard) were sold off, leaving the group with Sears Clothing and Sears Properties. [29]

The womenswear business (comprising Warehouse, Richards, Wallis, Outfit and Miss Selfridge) was subsequently transferred to Arcadia Group for £151 million. [31] Philip Green later purchased the Arcadia Group, regaining control of Wallis and Miss Selfridge alongside Arcadia's other brands (Arcadia having closed Richards, and sold Warehouse to Rubicon Retail).

Sears Group Properties, a wholly owned subsidiary, was sold to the owner of department store Owen Owen, and continues to operate as an outsourced property solution for other fashion brands.[ citation needed ]

SPDL (Sears Property Developments Limited), a wholly owned subsidiary of Sears plc, was swallowed up by January Investments but the retail park development properties asset strip generated around £50 million. These included Parc Fforestfach (A483 Pontardulais Road, Swansea) and Westway Cross Retail Park (Greenford). The Sears Property Developments Limited team of four contributed in excess of £10 million per annum in profits between 1995 and 1999 and was Sears "secret weapon." The Times's unfavourable commentary regarding SPDL's property development pipeline (stating it was involved in risky developments) arguably led to Sears plc becoming a bid target.[ citation needed ]

Brands owned by Sears

Footwear retailers and manufacturers

Departmental stores

Clothing

Sports and Leisure

Engineering

Motor vehicle sales and service

Jewellery retailers and miscellaneous

Licensed betting offices

Linen hire and industrial laundries and knitwear manufacture

Housebuilding

Home shopping

Other

Brands after demise of Sears

Adams Childrenswear - trading as 'Adams Kids' - remained on the high street until 2010, after some difficulties over the years, and collapsed into administration twice in the late 2000s; [32] former Stead & Simpson chairman John Shannon purchased a portion of the chain's outlets and the Adams brand, [33] before the company fell into administration for a third time in 2010. [34] The brand survives as an online business. [35]

Selfridges is owned by Selfridges Group (itself owned 50% by Thai Central Group & Austrian Signa Holdings) it has expanded out of London with branches in Manchester & Birmingham.

Richard Shops were closed down by Arcadia Group shortly after the firm took the chain over from Sears. Miss Selfridge and Wallis remain part of Arcadia, and the firm has also continued to develop and evolve the Outfit out-of-town fashion store format initially developed by Sears. Arcadia sold Warehouse as part of the deal which created Rubicon Retail in 2002. Subsequently, Rubicon merged with Mosaic Fashions, and following the collapse of Mosaic, Warehouse is in the hands of Aurora Fashions, which took on many of Mosaic's brands.[ citation needed ]

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References

  1. 1 2 3 4 5 6 Richard Davenport-Hines Clore, Sir Charles (1904–1979) Oxford Dictionary of National Biography, Oxford University Press, 2004
  2. ↑ Andrew Godley, Business History Centre at Reading University American Multinationals and Innovation in British Retailing, 1850–1962 Helsinki Congress of the International Economic History Association, August 2006
  3. 1 2 3 4 5 6 7 8 9 10 11 12 "SEARS PLC History". Funding Universe. Retrieved 27 April 2020.
  4. ↑ "J. Sears in £3,500,000 share purchase". The Times . 15 September 1954. p. 12.
  5. ↑ PRIVATE MONOPOLIES Hansard, 14 February 1962
  6. 1 2 "Mr Charles Clore's Review". The Times . 12 May 1960. p. 23.
  7. ↑ "UK fast fashion chain Miss Selfridge Australia-bound, report suggests - SmartCompany". SmartCompany. 6 March 2013. Retrieved 3 July 2017.
  8. ↑ "Furness yard sold for £2½ million to Swan Hunter". The Times . 12 October 1968. p. 13.
  9. ↑ "Messrs Mappin & Webb (Biographical details)". London, England: British Museum. Retrieved 12 August 2024.
  10. 1 2 "Another record year (advertisement)". The Times . 7 June 1985. p. 27.
  11. 1 2 3 Sears Holdings Annual Report 1982-83. 31 January 1983 – via Companies House.
  12. ↑ Sears Holdings Limited Annual Report 1974-1975. 31 January 1975 – via Companies House.
  13. ↑ Poole, Teresa (13 August 1986). "Last-ditch bid saves Blacks". The Times . p. 17.
  14. ↑ "Foster may accept rival bid". The Times . 12 March 1985. p. 19.
  15. ↑ ADAMS CHILDRENSWEAR LIMITED: INITIAL SUBMISSION [usurped] Competition Commission, 2006
  16. 1 2 3 Sears plc Annual Report 1986-87. 31 January 1987 – via Companies House.
  17. 1 2 3 Sears plc Annual Report 1987/88. 31 January 1988 – via Companies House.
  18. ↑ Sears plc Annual Report 1988/89. 31 January 1989 – via Companies House.
  19. 1 2 Sears plc Annual Report 1990/91. 31 January 1991 – via Companies House.
  20. 1 2 Sears plc Annual Report and Accounts 1992-93. 31 January 1993 – via Companies House.
  21. ↑ "Where class wins over cash". The Guardian . 27 October 1991.
  22. 1 2 Clark, Michael (6 February 1986). "Brokers braced for a fall as bonds continue to slide". The Times . p. 28.
  23. 1 2 3 Sears plc Annual Report and Accounts 1995-96. 31 January 1996 – via Companies House.
  24. ↑ "FACIA BUYS SAXONE AND CURTESS FROM SEARS - PR Newswire" . Retrieved 13 November 2015.
  25. ↑ Cunningham, Sarah (14 January 1997). "Sears needs the Clore magic to step back into City favour". The Times . p. 31.
  26. ↑ British Shoe Corporation Limited Accounts 1 February 1997. 1 February 1997 – via Companies House.
  27. 1 2 3 4 Matthew Valentine (12 February 1998). "British Shoe misses its step". Design Week. Retrieved 24 August 2024.
  28. ↑ Nissé, Jason (5 February 1998). "Sears close to US deal for Cable & Co". The Times . p. 27.
  29. 1 2 3 Sears Limited Directors' Report and Accounts. 31 January 1999 – via Companies House.
  30. ↑ "Sears turns to Green". BBC News. 21 January 1999. Retrieved 28 February 2009.
  31. ↑ "Sears sells womenswear business". BBC News . 8 July 1999.
  32. ↑ Adams sheds 850 jobs as administrators close 111 shops guardian.co.uk, 5 February 2009
  33. ↑ Childrenswear retailer Adams bought by former owner John Shannon The Telegraph, 14 February 2009
  34. ↑ Childrenswear chain Adams falls back into administration guardian.co.uk, 22 January 2006
  35. ↑ About Us Adams Kids
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