Book People buy-out worth £10-£20m

Endless LLP has invested between £10m-£20m for co-founder Ted Smart's share of The Book People, The Bookseller understands.

The company's other co-founder, Seni Glaister, led a management buy-out of the company from Smart yesterday (15th September), backed by venture capital company Endless LLP. 

Endless also owns chain discount bookseller The Works and bought and sold British Bookshops and Stationers and the Book Club Associates, although this deal is entirely separate from The Works.

Glaister and Endless are now the major shareholders in the mail order and online bookseller, with more equity set aside for the management team. Smart has now left the company entirely, although Glaister said she expected him to be "remaining very much at the heart of the industry".

The Book People was founded in 1988 by Smart and Glaister as a mail order bookseller, but has invested heavily in its direct to consumer website in more recent years, rivalling Amazon by offering customers deep discounts of up to 82% off titles.

It recently took a £2.5m loan from Gordon Brothers Europe to support it “outside of its main trading periods” and its latest results posted last October showed the company had racked up losses of £2.5m in 2012, down from £1.7m in 2011, on revenues of £93.1m.

Glaister said: “I'm thrilled that Ted has given me and the team this opportunity to take The Book People forward and I'm delighted to be working with Endless, who share my enthusiasm for the future of bookselling. I don't think there has ever been a more exciting time to be in this business and I am very much looking forward to the next chapter."

She added: "The business has changed significantly over the years and our customers can now find tens of thousands of titles on our website, beyond those that we hand pick and stock in our Bangor warehouse. Raising awareness of this feature will be a major part of our strategy going forward."

On the subject of Smart's departure, Glaister said: "Ted is technically on gardening leave. But Ted has never followed a rule in his life and I don't expect him to start now.  I'm counting on him remaining very much at the heart of the industry. He is of course the greatest supporter of The Book People and wants the best for the business and the team so I expect him to continue as a wonderful and positive influence in our lives."

The company said that following the buy-out, the business would continue to grow its reputation in the market, promote reading for all ages and “provide the best service to its customers through a variety of innovative channels.”