Commercial Finance have provided £5m worth of asset based lending to Kennelpak Ltd, an established retailer and distributor of high quality pet food and accessories. The business established in 1974 and based in Nottingham, distributes pet food and products under a wide range of their own and licensed brands including Collards, Taste of the Wild, Yakers and Whimzees. They also operate a number of retail stores under the Kennelgate brand which first opened in 1983. Since the first store the portfolio has grown to over 20 stores, clustered around the Midlands, employing 275 staff to date.
The family owned business has been acquired by Enact, the SME fund managed by Endless LLP in July 2017, and is currently undergoing a programme of investment under the implementation of its value creation plan. The new funding from Secure Trust Bank includes, receivables, inventory and property lines and will support the further growth of the company as it plans to open 20 new Kennelgate stores over the next three years.
In addition to this, Kennelgate is enhancing their services offering in its existing stores with the roll out of washing and grooming stations. It will also look to rebrand and enhance its e-commerce channel, as it looks to grow its 'click and collect' service and geographical reach.
Chris Cormack, Investment Director at Enact, said: "This funding will enable the addition of 20 new stores, as well as a repositioning of our strategic offering, which will certainly place Kennelpak in a position for further growth.
"Endless has worked with Secure Trust Bank on a number of transactions in the past, and we've been impressed by the team's can-do attitude and speed of delivery. We're looking forward to continuing our work with the team, as we embark on the implementation of our value creation plan."
David Parsons, Regional MD, Midlands, said: "We are delighted to be working with Endless on another of their investments, and we were particularly impressed with the sheer caliber of the team which they have brought together. The management team at Kennelpak have huge ambitions for the future, with desires to challenge its competitors in the market - something we at Secure Trust Bank can certainly identify with.
"The business plan covers off all avenues for growth, with a clear strategy for national expansion, as well as improvements to its website. E-commerce has become a huge focus in retail, as more stores are adapting to the ever changing needs of the consumer.
"This, alongside new stores, will certainly boost Kennelpak's market share and help it compete with other well-established pet products brands."
Learn more about the companies Commercial Finance work with.