Mone buys out Ultimo investors

Published on Sunday 6 July 2008 20:56

BRA tycoon Michelle Mone has bought out investors Sir Tom Hunter and Ian Grabiner in a deal understood to be worth £800,000.

The Scots billionaire and the chief operating officer of fashion group Arcadia had invested in Mone's lingerie company, Ultimo, when the business nearly collapsed after its launch in 1999. The firm has since prospered.

Hunter is understood to have received 640,000 and Grabiner 160,000.

Their original investment was not disclosed, but Mone confirmed Hunter had made a healthy return on his investment, reported at the time to be worth between 100,000 and 300,000.

Mone, along with her husband Michael, now has full control of the company and said Hunter had been "extremely supportive" of the business. She said she had made the decision to buy out her investors and did not plan to sell stock in the company in future.

Recently Mone, a model before she became one of Scotland's most successful businesswomen, signed former Spice Girl Melanie Brown to be the new face of her lingerie brand. Plans for the business include the launch of a range for young women to compete with La Senza.

Hunter and Grabiner have a long history of working together. Grabiner was commercial director of sports-wear chain Sports Division, that made Hunter's fortune when he sold it to JJB Sports.

Grabiner's cousin, Lord Grabiner QC, defended Hunter against a High Court action from shareholders in the failed Gadget Shop.