SOUTHAMPTON accountants are celebrating after putting together the £28m management buy-out of an Isle of Wight catalogue firm.

The deal for Scala Collections was arranged by staff at Southampton business advisors Smith & Williamson and backed by Barclays Private Equity.

Founded in 1995 by Claire Locke and her husband, Glyn, pictured right, Scala Collections is a niche mail order firm specialising in Italian fashion and is a major employer on the island with 122 staff. Now, using the Internet as well as its traditional mail order format, the company sells Italian designed ladies' clothes, shoes and accessories under two brand names, Artigiano and Spirito di Artigiano.

Claire Locke, a mother of two, said: "Having started and developed Scala Collections for over 11 years I wanted to work with a team who understood direct retailing and were as passionate about their involvement in the process as Glyn and I are about the business."

The business boasts a 70 per cent repeat customer base and aims for turnover to reach £20m by 2008. The figures are impressive, especially considering the firm started out with the kitchen table as its headquarters.

Amanda Phillips, who worked on the deal for Smith & Williamson, said: "According to the latest research the UK is the number one online retail market in Europe. The growth in direct sales has been phenomenal and Scala Collections is well placed to exploit this growth."

Southampton law firm Lamport Bassitt advised the Lockes on the deal, which sees Claire Locke stay on as a director.