Press

RBS Backs Menkind Stores with Government Scheme
September 2009

London – The Royal Bank of Scotland (RBS) has recently supported men’s gift and accessories company, Menkind Stores with a funding package to assist with the purchase of five new retail units. The funding package included £987k from the Government-backed Enterprise Finance Guarantee (EFG) Scheme.

Menkind Stores was established in 2001 by Paul Kraftman who had recognised a gap in the retail market for stores specialising in gifts for men. Paul’s aim was to provide a one-stop-shop for men’s gifts with products extending beyond the usual gadgets and boys toys to include men’s branded accessories such as wallets and cufflinks, and a broad spectrum of products to cover a wide array of men’s interests.

Paul turned to his Relationship Manager at RBS, Robert Laurie to discuss the additional funding principally needed to open five new retail units in Aberdeen, Cardiff, Nottingham, Liverpool and Manchester, to fund the refurbishment of the flagship store in Lakeside Shopping centre, and to redevelop the website. The funding package provided included funds from the EFG Scheme.

RBS and NatWest are fully supportive of working with the Government on new lending opportunities. To date they have led the field in taking applications for the EFG Scheme, with over £228 million worth of loans already agreed or in the pipeline. They have also confirmed receipt of £250 million European Investment Bank funding, currently being passed on to customers as part of their commitment to make £3bn extra lending via 12 regionally managed funds of £250m.

Paul Kraftman, Managing Director, Menkind Stores said:
“I am pleased to confirm that we have continued to grow our business and our profitability in what for many has been a difficult market. We believe this has been achieved due to the strength of our proposition and our flexible operating model which allows us to manage and align costs so effectively with the seasonality of our market.

“Our new store openings last year performed well having been fitted out to a new concept which has proven to be a great success in driving sales of more high value products. The current economic climate has created challenges, yet also great opportunities to affordably open new retail outlets, and as a result of the funding we are now able to accelerate the expansion of our permanent store portfolio. We’re thankful to Robert and the team at RBS for arranging the finance package we needed.”

Robert Laurie, Relationship Manager at RBS, added:
“Menkind Stores are successful retailers in a niche market and in response to the current climate, their affordable range is particularly profitable. We were happy to arrange the funding for Paul and the EFG Scheme proved a perfect fit to the business’ needs. We wish Paul all the best as he continues to grow the business and makes the most of the growing demand for the products Menkind offers.”