We advised US investment firm Davidson Kempner Capital Management on the high profile GBP 180 million financing granted to Pepkor Europe of the Steinhoff Group

In the wake of the highly publicized troubles surrounding the South African Steinhoff Group, Pepkor Europe has secured GBP 180 million of independent financing that will reduce its reliance on its South African owner Steinhoff International.

Kochański & Partners (K&P) advised Davidson Kempner Capital Management, which has provided Pepkor Europe with a GBP 180 million two-year loan facility. Pepkor Europe is the owner of, among others, Poundland, Dealz, Pep&Co and Pepco brands. As a result of the deal, Pepkor Europe would no longer be dependent on working capital from the Steinhoff Group. Pepco, with its head office in Poznań, has in excess of 1,200 stores and over 12,000 employees across Europe, including Poland.

“Our European Pepkor businesses – Poundland, Dealz, Pep&Co and Pepco in eastern Europe are firing on all cylinders, adding customers and growing market share,” advised Andy Bond, the chief executive of Pepkor Europe.

K&P worked alongside Ropes & Gray International LLP. The borrower was represented by DWF LLP and Polish law firm Stolarek&Grabalski. K&P’s team was led by Szymon Gałkowski (Advocate, Partner, Head of the Financial Services Practice) and included Agnieszka Serzysko (Attorney at Law, Partner, Financial Services Practice).