Celebrity Spa Haunt Champneys to Explore £250m Sale

Champneys, the luxury spa chain renowned for its celebrity clientele including Daniel Craig, Kate Moss, and Naomi Campbell, has engaged investment bankers from Cavendish to explore strategic options ahead of its 100th anniversary.

These options may include acquiring a new property, selling a minority stake, or potentially selling a controlling interest in the business.

Currently led by Stephen Purdew following the death of his mother Dorothy Purdew last year, Champneys operates a range of resort spas, day spas, and an education and training business. The chain is also known for its line of personal care products sold through major retailers.

The company is reportedly finalising a deal to acquire an additional spa hotel, signaling a potential expansion strategy. However, a sale of the business remains a possibility as sources suggest that a majority stake could attract interest from hotel groups, property investors, and private equity firms, with discussions expected to begin early in 2025.

Although Champneys has previously implied a valuation of £300 million, market conditions, including challenges in the hospitality sector and increased competition from spa-focused hotels, may result in a more modest valuation.

Financial filings show turnover remained steady at £56.5 million for the year ending April 2023, but the company reported a pre-tax loss of over £5 million, reflecting the pressures on the luxury leisure market.

Neither Champneys nor Cavendish has commented publicly on the developments.
Source: Sky news
Edited by Evans Momodu