Ottakar's
Encyclopedia
Ottakar's was a chain of bookshops in the United Kingdom founded in 1987 by James Heneage. Following a takeover by the HMV Group plc in 2006, the chain was merged into the Waterstone's
brand.
James Heneage established the Ottakar's chain in 1987, taking inspiration from The Adventures of Tintin
book King Ottokar's Sceptre
. He saw a lucrative market in small towns which lacked a Waterstones branch and opened stores in Loughborough, Brighton, Banbury, Salisbury and Trowbridge. A number of Ottakar's stores drew on the Tintin connection and had walls painted with scenes from the series. The Ottakar store in Bromley
, Kent
had a large rocket taken from the Tintin novels so that children could play inside it. Above the rocket was a cartoon picture of the night sky to add to the effect.
The company was listed on the London Stock Exchange
in 1998 and expanded rapidly, making a number of acquisitions including small bookstores in the West Country
, eight branches of James Thin Booksellers
in 2002, and twenty-four branches of Hammicks Bookshops Ltd, a company with 35 years of bookselling history, in April 2003. By mid-2006, the chain had shops in 141 locations throughout the United Kingdom.
In an attempt to compete with online booksellers, Ottakar's established an online ordering service. After turning a loss, the service was withdrawn in 2001, but by 2006, the company had hoped to relaunch their internet arm before the takeover by HMV.
Ottakar's was well-known in the book trade for the exceptionally high morale and commitment of its staff. Damien Horner, from the advertising agency Mustoes commented that Ottakar's "was more like a religious cult than a business".
Ottakar's was also very popular with book buyers. A customer survey in 2004 revealed that many people believed that their local branch of Ottakar's was an independent bookshop. This was viewed as a vindication of
the Ottakar's head office policy of giving branches as much local autonomy as possible. However, some suggested that Ottakar's had a weak national brand, which was vulnerable to changing market conditions.
published during the previous year. First awarded in 2005, the purpose of the prize was "to uncover hidden talent in children's writing" and was therefore open only to authors who have published no more than three books. When all Ottakar's stores were rebranded as Waterstone's
following the HMV Group takeover of the Ottakar's chain, the prize also changed its name to become the Waterstone's Children's Book Prize
.
firm Phoenix Equity Partners
) made a management buyout
offer which was initially accepted by Ottakar's independent directors, some of whom had only recently joined the company. When a higher offer was made by HMV, the owners switched their recommendation to accept the HMV bid.
The Office of Fair Trading
was due to decide whether to approve the buyout of Ottakar's by Waterstone's on 2 December 2005. On 6 December the OFT referred the case to the Competition Commission
. The Competition Commission
provisionally cleared HMV Group, through Waterstone's, for takeover of the Ottakar's group on March 30, 2006. The Commission stated that the takeover would "not result in a substantial lessening of competition", and was "not likely to affect book prices, range of titles offered or quality of service." Through extensive research they also found that "contrary to widespread perception, Waterstone's, like Ottakar's, operates a book-buying system which mixes central and local input on stock selection."
Waterstone's then announced that it had successfully negotiated a takeover of Ottakar's on May 31, 2006. HMV chief executive Alan Giles
said in a statement: "A combined Waterstone's and Ottakar's business will create an exciting, quality bookseller, able to respond better to the increasingly competitive pressures of the retail market." Ottakar's chairman Philip Dunne said: "Over the last year the book market has undergone a significant change with new levels of competition from the supermarkets and online retailers impacting all specialist booksellers and in particular those with insufficient scale to compete on equal terms."
By Christmas
2006, all stores were converted, meaning the end of Ottakar's. Within two years of the takeover, approximately 70% of the Ottakar's managers had left the business.
Waterstone's
Waterstone's is a British book specialist established in 1982 by Tim Waterstone that employs around 4,500 staff throughout the United Kingdom and Europe....
brand.
History
The Adventures of Tintin
The Adventures of Tintin is a series of classic comic books created by Belgian artist , who wrote under the pen name of Hergé...
book King Ottokar's Sceptre
King Ottokar's Sceptre
King Ottokar's Sceptre is the eighth of The Adventures of Tintin, a series of classic comic-strip albums, written and illustrated by Belgian writer and illustrator Hergé, featuring the young reporter Tintin. It was first serialized as a black-and-white comic strip in Le Petit Vingtième on 4 August...
. He saw a lucrative market in small towns which lacked a Waterstones branch and opened stores in Loughborough, Brighton, Banbury, Salisbury and Trowbridge. A number of Ottakar's stores drew on the Tintin connection and had walls painted with scenes from the series. The Ottakar store in Bromley
Bromley
Bromley is a large suburban town in south east London, England and the administrative headquarters of the London Borough of Bromley. It was historically a market town, and prior to 1963 was in the county of Kent and formed the administrative centre of the Municipal Borough of Bromley...
, Kent
Kent
Kent is a county in southeast England, and is one of the home counties. It borders East Sussex, Surrey and Greater London and has a defined boundary with Essex in the middle of the Thames Estuary. The ceremonial county boundaries of Kent include the shire county of Kent and the unitary borough of...
had a large rocket taken from the Tintin novels so that children could play inside it. Above the rocket was a cartoon picture of the night sky to add to the effect.
The company was listed on the London Stock Exchange
London Stock Exchange
The London Stock Exchange is a stock exchange located in the City of London within the United Kingdom. , the Exchange had a market capitalisation of US$3.7495 trillion, making it the fourth-largest stock exchange in the world by this measurement...
in 1998 and expanded rapidly, making a number of acquisitions including small bookstores in the West Country
West Country
The West Country is an informal term for the area of south western England roughly corresponding to the modern South West England government region. It is often defined to encompass the historic counties of Cornwall, Devon, Dorset and Somerset and the City of Bristol, while the counties of...
, eight branches of James Thin Booksellers
James Thin
James Thin was, until 2002, the principal academic bookshop in Edinburgh, Scotland, with its main premises near the University of Edinburgh in Infirmary Street. It also had branches in other cities, including Perth and Dundee....
in 2002, and twenty-four branches of Hammicks Bookshops Ltd, a company with 35 years of bookselling history, in April 2003. By mid-2006, the chain had shops in 141 locations throughout the United Kingdom.
In an attempt to compete with online booksellers, Ottakar's established an online ordering service. After turning a loss, the service was withdrawn in 2001, but by 2006, the company had hoped to relaunch their internet arm before the takeover by HMV.
Ottakar's was well-known in the book trade for the exceptionally high morale and commitment of its staff. Damien Horner, from the advertising agency Mustoes commented that Ottakar's "was more like a religious cult than a business".
Ottakar's was also very popular with book buyers. A customer survey in 2004 revealed that many people believed that their local branch of Ottakar's was an independent bookshop. This was viewed as a vindication of
the Ottakar's head office policy of giving branches as much local autonomy as possible. However, some suggested that Ottakar's had a weak national brand, which was vulnerable to changing market conditions.
Children's Book Prize
The Ottakar's Children's Book Prize was an annual award given to a work of children's literatureChildren's literature
Children's literature is for readers and listeners up to about age twelve; it is often defined in four different ways: books written by children, books written for children, books chosen by children, or books chosen for children. It is often illustrated. The term is used in senses which sometimes...
published during the previous year. First awarded in 2005, the purpose of the prize was "to uncover hidden talent in children's writing" and was therefore open only to authors who have published no more than three books. When all Ottakar's stores were rebranded as Waterstone's
Waterstone's
Waterstone's is a British book specialist established in 1982 by Tim Waterstone that employs around 4,500 staff throughout the United Kingdom and Europe....
following the HMV Group takeover of the Ottakar's chain, the prize also changed its name to become the Waterstone's Children's Book Prize
Waterstone's Children's Book Prize
The Waterstone's Children's Book Prize is an annual award given to a work of children's literature published during the previous year. First awarded in 2005, the purpose of the prize is "to uncover hidden talent in children's writing" and is therefore open only to authors who have published no more...
.
Takeover
In August 2005, amid rumours of a forthcoming takeover attempt by HMV Group plc, the owners of Ottakar's (founders James Heneage and Philip Dunne backed by private equityPrivate equity
Private equity, in finance, is an asset class consisting of equity securities in operating companies that are not publicly traded on a stock exchange....
firm Phoenix Equity Partners
Phoenix Equity Partners
Phoenix Equity Partners is a leading United Kingdom mid-market private equity firm.Phoenix manages funds exceeding £900 million on behalf of leading institutions and other investors from around the world...
) made a management buyout
Management buyout
A management buyout is a form of acquisition where a company's existing managers acquire a large part or all of the company.- Overview :Management buyouts are similar in all major legal aspects to any other acquisition of a company...
offer which was initially accepted by Ottakar's independent directors, some of whom had only recently joined the company. When a higher offer was made by HMV, the owners switched their recommendation to accept the HMV bid.
The Office of Fair Trading
Office of Fair Trading
The Office of Fair Trading is a not-for-profit and non-ministerial government department of the United Kingdom, established by the Fair Trading Act 1973, which enforces both consumer protection and competition law, acting as the UK's economic regulator...
was due to decide whether to approve the buyout of Ottakar's by Waterstone's on 2 December 2005. On 6 December the OFT referred the case to the Competition Commission
Competition Commission
The Competition Commission is a non-departmental public body responsible for investigating mergers, markets and other enquiries related to regulated industries under competition law in the United Kingdom...
. The Competition Commission
Competition Commission
The Competition Commission is a non-departmental public body responsible for investigating mergers, markets and other enquiries related to regulated industries under competition law in the United Kingdom...
provisionally cleared HMV Group, through Waterstone's, for takeover of the Ottakar's group on March 30, 2006. The Commission stated that the takeover would "not result in a substantial lessening of competition", and was "not likely to affect book prices, range of titles offered or quality of service." Through extensive research they also found that "contrary to widespread perception, Waterstone's, like Ottakar's, operates a book-buying system which mixes central and local input on stock selection."
Waterstone's then announced that it had successfully negotiated a takeover of Ottakar's on May 31, 2006. HMV chief executive Alan Giles
Alan Giles
Alan Giles is Chairman of Fat Face, the active lifestyle retailer.He was chief executive officer of HMV Group, owner of record shop HMV, which he joined in 1998, from March 1999 until September 2006....
said in a statement: "A combined Waterstone's and Ottakar's business will create an exciting, quality bookseller, able to respond better to the increasingly competitive pressures of the retail market." Ottakar's chairman Philip Dunne said: "Over the last year the book market has undergone a significant change with new levels of competition from the supermarkets and online retailers impacting all specialist booksellers and in particular those with insufficient scale to compete on equal terms."
By Christmas
Christmas
Christmas or Christmas Day is an annual holiday generally celebrated on December 25 by billions of people around the world. It is a Christian feast that commemorates the birth of Jesus Christ, liturgically closing the Advent season and initiating the season of Christmastide, which lasts twelve days...
2006, all stores were converted, meaning the end of Ottakar's. Within two years of the takeover, approximately 70% of the Ottakar's managers had left the business.