UK retail chain Leading Labels has been snapped up by turnaround specialists Baaj Capital.

Leading Labels is a clothing retail chain with 15 stores located throughout the UK, selling men's and women's fashion brands. 

Following unprecedented challenges faced by the clothing retail sector as a result of the Covid-19 pandemic and the company's reliance on 'bricks and mortar' sites, the retailer's trading during 2020 was significantly constrained. As a result, the shareholders accelerated their retirement plans and seek a solvent exit.

Shareholders of the company were advised by business advisory firm Quantuma on the deal. 

Quantuma says Baaj Capital has an established track record of successful turnaround acquisitions in the fashion retail sector and the acquisition of Leading Labels brings new brands as well as advantageous locations to existing operations. 

"2020 was a tough year for retail and many have reassessed their short and long-term business plans," says Adrian Howells, director at Quantuma, who adds Baaj Capital will modernise operations and thereby ensure Leading Labels' survival.

"Achieving this sale in such a short amount of time is a great outcome for both the shareholders and the staff of Leading Labels alike as the future of the business is assured."