Gina Tricot operates around 180 stores

Gina Tricot operates around 180 stores

Private equity firm Nordic Capital Fund has acquired a majority stake in Swedish fashion retail chain Gina Tricot.

The agreement, made for an undisclosed sum, will strengthen Gina Tricot's financial position, it said. The size of the stake was not disclosed, but the founding Appelqvist family will remain a significant shareholder.

The company said it has experienced a slight decline in revenue in recent years due to, amongst other things, challenging market conditions. A strategic review during the last six months, however, resulted in the firm introducing measures to reverse this trend.

Under Nordic Capital's ownership, Gina Tricot will gain access to a pool of capital and extensive experience of the retail market. Fashion industry and investment executive Paul Frankenius will invest as a minority shareholder together with Nordic Capital.

Lindex CEO Göran Bille will take over as CEO when Jörgen Appelqvist transitions into his future role on the board of directors.

Gina Tricot operates around 180 stores across Sweden, Norway, Denmark, Finland and Germany. In 2013, the company reported sales of around SEK2bn.

"Together with Nordic Capital, we can focus on further developing Gina Tricot. Nordic Capital is expertly placed to provide both financial resources and industrial experience to support the growth and a new development for Gina Tricot. Our vision is to be the prime fashion retailer in all our markets," says Jörgen Appelqvist, CEO and co-founder.