The health foods chain Holland & Barrett is weighing a last-ditch rescue bid for Planet Organic, the food and personal care retailer which stands on the brink of collapse.
Sky News understands that H&B, which is owned by the Russian-linked investment group LetterOne, is among a handful of suitors who remain interested in buying parts of Planet Organic.
City sources said that H&B’s interest resides in its target’s brand and intellectual property rather than its portfolio of 13 stores.
Like a number of the other parties who are in talks with Interpath, Planet Organic’s adviser, a rescue deal would nevertheless entail substantial job losses among its 360-strong workforce.
One insolvency industry practitioner said on Wednesday that Planet Organic had decided to seek an extension to a notice of intention to appoint administrators that it had lodged late last month.
The extension will give it until close to the end of the month to finalise a deal.
Sky News previously reported that Planet Organic’s potential buyers include Redbus Ventures, an investment vehicle set up by one of the founders of Lovefilm.
Waitrose, the grocery arm of the John Lewis Partnership, pulled out of talks about a deal with Planet Organic in March.
For Holland & Barrett, which has a supplier relationship with Planet Organic, a deal would make strategic sense although it would represent small change in financial terms.
A sale of the business was increasingly likely to take place through a pre-pack administration process.
Planet Organic chief executive George Dymond told staff last month that it had “not got back to the levels of sales that we were seeing before the pandemic”.
“So, while we have taken every possible action to improve our position, including additional investment from our existing shareholders, we have so far been unsuccessful in raising sufficient funds needed to support the business and the growth plan.
“I want you all to know how very sorry I am that we are in this position – I am conscious that this will be a very uncertain time for you all.”
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Planet Organic, which was founded in 1995 by Renee Elliot, has been working with Interpath on a review of its strategic options since early this year.
The chain sells organic food and drink, as well as healthcare and bodycare products.
Like many retailers, its recent performance has been hampered by the pandemic and reduced city centre footfall.
It is understood to have been loss-making in each of its last two financial years.
A spokesman for LetterOne declined to comment.
