For any business, when challenging times hit speed is of the essence to protect its very viability.
Our restructuring team were recently introduced to a new client via its financial advisors to support the board in anticipation of an accelerated M&A process.
The client in question has been at the forefront of the luxury furnishings market for over 50 years, earning global awards and building a catalogue of over 9,000 original designs.
Given the ever-changing nature of the global textile and retail industry, our client is no stranger to navigating the ups and downs of global trade, shifting consumer preferences, and difficult periods of global economic downturns. However, in working with the financial advisors and key stakeholders in the business, it quickly became apparent that decisive action was needed to futureproof the business.
Preserving commercial future
For this client, our goal was to help them secure a deal that preserved the jobs of its employees, which guaranteed renewed cashflow into the business and allowed it to continue operating under its own name.
As a business that relied on the brilliant minds of its creatives, it was evident that its allure to potential bidders was its vast quantity of intellectual property (IP).
To achieve this goal, we needed a way to maximise the commercial potential of the client’s IP without it losing its entire creative integrity.
With all of this in mind, our cross-practice team comprised of Restructuring, Corporate, Employment and Commercial IP and TMT delivered a sale and license-back agreement with one of the UK’s leading homeware and furniture retailers, ensuring the preservation of our client’s employees and bringing in a vital cash injection.
The deal allowed for the founder to remain involved in their business as its creative director, preserving the integrity of its designs and safeguarding the brand’s legacy into the future.
Our work demonstrated our cross-practice approach combined with sector expertise to deliver a complex transaction in a challenging time scale, working with multiple stakeholders.
This deal was a fantastic outcome for our client as we were able to preserve the commercial future of the business, keeping creative control in the hands of the client. Having worked on many licensing and IP focussed transactions in the past, our team was able to truly understand the importance of the brand, and as a result, we are now working with them as their advisers in this next stage of their story.Elizabeth Wood
Restructuring Legal Director at Hill Dickinson
Working on this licensing deal was a standout experience. It involved navigating a complex web of existing licensee relationships while strategically leveraging our client’s IP to secure a significant capital injection—without compromising their ability to operate and grow. It was a challenging brief, but one that delivered real value. The Hill Dickinson team once again demonstrated its ability to punch well above its weight, going head-to-head with one of the world’s largest law firms under tight deadlines to help achieve a fantastic outcome for all involved.Paddy Dwyer
Commercial IP and TMT Partner at Hill Dickinson