ChemSpec sells House of Paint brand to Mica

The agreement would see both owned and franchised stores trading under these brand names, continuing business as usual, but with the backing of the management infrastructure of Mica.

The deal was set to be effective from 1 October.

Stores currently owned by ChemSpec would be governed by a franchise agreement between ChemSpec and Mica and would in time be sold off to independent franchisees.

"Currently franchised stores will continue with business as usual in a seamless transaction for franchisees' customers and suppliers," ChemSpec said.

Bruce Mackinnon, chief executive of ChemSpec said: "ChemSpec is in a turnaround process, which is well on its way. As part of this turnaround process the business is being simplified where ChemSpec returns to manufacturing and distributing paint.

"This deal is in line with our strategy to exit retail and increase turnover through our association with blue chip distributors."

Clifford Buchler, the managing director of Mica said: "It was a win-win deal for all parties. Mica understands the franchise model and will add value to this one. The Mica Group specialises in the retail market and this franchise offering provided a broader base going into the future. The intention is to grow this franchise model nationally, which will automatically create greater opportunities for suppliers.

"We aim to develop the House of Paint brand whereby a broader range of paint and allied products is available to the consumer from one dedicated paint outlet."