LPP designs and sells clothing through a retail network of 54 stores in
The company has raised $13.3m of equity through the sale of new shares in order to continue its expansion with a plan to double the number of stores within two years. Analysts estimate that the Polish clothing market generates sales of approximately $3.5bn to $4bn annually. The market is fragmented, with very few chains numbering more than five to ten stores. LPP, which operates through its “Reserved” brand, is by far the largest fashion retail chain in
Jacek Siwicki, managing partner at Enterprise Investors, said LPP had the ‘potential to become a regional leader in its market’. “Due to our retail experience we should be able to help the management develop the company further. The advantage of investing in a listed company such as LPP, which is undergoing a strategy of expansion, is that there is greater transparency and improved liquidity for our investment.” The rights issue was heavily oversubscribed by Polish institutional investors.
Funds managed by Enterprise Investors have invested over $650m in almost 90 companies across all economic sectors in