100 jobs saved as private equity firm buys Arran Aromatics from administrators

The firm, which was founded on Arran in 28 years ago, has six retail stores and generates sales of £6m per annum.

The takeover ends years of turmoil at the firm which against which the HMRC lodged a winding up petition in 2009 respect of £180,000 of underpaid payroll taxes.

Turnaround expert Iain Pittman, who will now remain on the board as chairman under Endless ownership. was put in charge following the HMRC intervention and spent months stabilising the business and clearing its debts.

Still in need of new investment, a deal put together in just a week has seen the company put into administration and bought by the private equity firm Endless.

Endless has announced that William Wellesley, the former head of Moulton Brown, has now been put in charge of the business.

He will join the board as non-executive chairman, while Allan Caldwell, previously chief executive of Scottish Fine Soaps, has been appointed chief operating officer.

Set up by the Russell family in 1989, Arran Aromatics, which was recently rebranded “Arran, Sense of Scotland”, will continue manufacturing and retail operations on the island while a new showroom recently opened on George Street in Edinburgh will also be kept on, Endless said.

It is believed that 32 of the jobs to have been secured are based on Arran.

Andrew Russell, the son of the founders and brand director, said: “We are delighted to have received the investment from Endless, which has been delivered at a vital time for Arran.

“The investment in the brand over the past few years has positioned it well for growth across a wide range of geographies and this new investment will help us make this a reality.

“‘Arran, Sense of Scotland’ is poised to join the best-loved Scottish brands around the world and we are all very excited about the future.”

Endless has previous experience of retail investments, in businesses including The Works stores, Bathstore and The West Cornwall Pasty Company.

Francesco Santinon, who led the investment for Endless, said: “We are delighted to be working with the Russell family to continue the progress of recent years of establishing Arran on a global stage and expect to be announcing more retail stores in the future.

“Due to the growing pains experienced over recent years, it became evident that Arran required further investment that has now been secured as has the future for its employees. Its manufacturing and retail operations will continue to operate as normal.”