UK retailer inspired decision to proceed with takeover

Stephen Tindall had the United Kingdom's number 2 retailer Debenhams in mind while planning to privatise The Warehouse.

He started thinking about privatisation six months ago, noting the impact of a volatile share price for The Warehouse after the failed Yellow Sheds operation.

He also noted the benefits of de-listing that other retail companies had experienced.

They included up-market retailers Neiman Marcus in the United States and Myer in Australia.

But Tindall has been particularly impressed by Debenhams, which was privatised in 2003 and has seen improvements, including better margins.

But Debenhams is quite unlike the Warehouse. It is an English retail institution that has been in business for more than a century and has 20,000 staff.

And the 2003 takeover of Debenhams by the Baroness private equity consortium of CVC Capital Partners, Texas Pacific Group and Merrill Lynch Global Private Equity was structured differently.

Despite privatisation gains, Debenhams is now taking a different route. After 2 1/2 years as a private company, it floated on the UK stock exchange on May 4.