Boxpark, dubbed the “world’s first pop-up mall” said revenue fell 55% last year but managed to break-even despite only trading for 22 weeks.
In the year to April 2021, sales fell to £6.8mln as the company suffered alongside the rest of the hospitality sector from the impact of Coronavirus (COVID-19).
The street-food vendor, which has 3 sites in London, said England’s Euro 2021 run was vital to its performance last year, with the tournament helping it survive according to chief executive Roger Wade.
Breaking even was “testament to the group’s highly flexible business model and cost base,” Wade told The Times newspaper. Unlike many companies, Boxpark didn’t have to rely on government loans.
Operating as a market for vendors to sell food, drink clothing, the company “bounced back from the crises stronger than ever,” and was able to retain most of its staff while also giving vendors rent relief and reduced service charges, provided they did not stay open for delivery.
COVID-19 did however negatively impact the sale of Boxpark to private equity firm LDC.
A deal was in place a week before the first lockdown but had to be put on hold for 18 months, which is rumoured to have potentially knocked £10mln of the value, according to The Times.
Under the new terms, LDC bought a 51% stake for anywhere between £40mln-£50mln from Wade and Sir Charles Dunson. Wade remains the largest shareholder with roughly 30%, while the employees have a 20% share.
LDC and Boxpark are believed to have raised £30mln to fund expansion into five new sites, with sites outside of London potentially soon to come.