Greybull Capital LLP is a private investment company that specialises in medium- to long-term investments in UK-based companies. It was incorporated as a limited liability partnership in April 2010. In the aftermath of the financial crisis of 2007–2008, Greybull's strategy was to buy distressed firms and return them to success.
By 2019, Greybull had bought several struggling firms for low prices, but many of them had subsequently failed. Examples include the airline Monarch, sports bar and snooker hall chain Riley's, the M Local convenience store chain, and electrical goods retailer Comet. Greybull bought British Steel, Britain's second-largest steelworks, for £1 in 2016, invested £20-million in the company, and charged it £6-million in fees and accrued £14-million of owed interest in the years after. British Steel became insolvent in May 2019, after failing to secure government funding.
Greybull was criticised in 2019 by Lord Myners for its track record of making money from failed investments.
Structure
Greybull Capital's two members are Marc Meyohas and Greybull Corporate Partner Ltd, formed in July 2012 and owned by Marc Meyohas. Greybull Capital is run by Marc Meyohas and Daniel Goldstein.
History
Greybull Capital was started in April 2010.
Greybull Capital was, until 2018, run by brothers Marc and Nathaniel Meyohas and long-standing family friend Richard Perlhagen. Greybull was set up to invest the wealth of the two families, whose ties go back forty years. Marc and Nathaniel Meyohas's father is a French corporate lawyer. Perlhagen's father owned a Swedish pharmaceutical operation which was sold for over ten million pounds.
In September 2018, Nathaniel Meyohas quit Greybull, which he ran with brother Marc Meyohas and Richard Perlhagen for eight years. He left to launch a turnaround fund.
In November 2018, Richard Perlhagen stopped being a Greybull director and Daniel Goldstein, a former equity derivatives specialist with Lehman Brothers, became the second director.
Buy-outs, backing and negotiations
New Era; petroleum, 2010
Greybull backed New Era Petroleum Inc, since 2010 with both working capital to develop its activities and capital to acquire and re-develop oil fields in the US.
New Era of Wyoming, USA owns The Greybull Field oil well in Greybull, Wyoming.
Plessey; semiconductors, 2010
Greybull supported management's plans to restructure and re-develop Plessey Semiconductors Ltd, of Plymouth, Devon, since 2010 and has financed add-on acquisitions.
Comet; electrical retailer, acquired 2011; insolvent 2014
Greybull led the backers of OpCapita's buyout of Comet Group, November 2011, a 236-store business, employing 7,000 for £2; plus a £50-million dowry paid by the past owner. Comet of Hull, UK, went into administration November 2012. Comet closes its last stores December 2012. Comet's administrators, Deloitte, said the collapse would cost the UK government £23-million in redundancy payments and £26.4-million in tax owed; Deloitte's figures showed OpCapita recouped almost £120-million from the insolvency. A tribunal ruled, June 2014, that Comet did not follow redundancy rules, so an additional £26-million must be paid by the UK Government, on top of the statutory redundancy it previously paid. Comet's collapse dubbed the biggest raid in British corporate history, November 2014. A Government statement said “The Secretary of State has concerns about the financial burden placed on the taxpayer caused by the collapse of companies such as Comet and is considering the options available”.
Rileys; sports bars; acquired 2012; insolvent 2014
Greybull acquired Rileys, a UK sports bars and snooker hall group, through a pre-pack administration in 2012. It was reported, Pre-packs can be controversial as they allow the new owner to shed a company's previous debts. Greybull shed about half of Rileys sites. Greybull tried to sell the company in summer 2014, but no buyer was forthcoming and Rileys was placed in administration for a second time 15 September 2014. In 2016, there were 30 Rileys Sports Bars in the UK, owned by Rileys Sports Bars (2014) Ltd.