NEWS

Independent furniture retailer completes rebrand project with fresh new look

“We change our windows and showroom every few weeks to help keep the store looking fresh at all times. One of our windows recently was showcasing our wallpapers and paints so we had rolls of wallpapers from ceiling to floor, with ‘paint dipped’ paint brushes hanging at different levels from the ceiling too. This was a really successful way to promote those items of our store. And as ever, our Christmas windows always look phenomenal, and we even won the best Woodbridge Christmas Window 2022.”

Independent home furnishings retailer Barretts of Woodbridge has unveiled its new store branding as part of its ongoing modernisation project.

Barretts, originally started in 1969 and still very much a family firm, is situated at 40 Thoroughfare in Woodbridge, Suffolk, has replaced the old green look with a more modern blue branding on its shop front.

This follows a successful in-store revamp too, which now includes new co-ordinated ‘set’ areas to help customers on their purchasing journey, with the business regularly updating its showroom to keep it looking fresh.

Millie Baker, Marketing & Online Sales Manager at Barretts, commented:

“We’ve had our branding redone, from green to blue and have had the front signage hand painted by a marvellous local painter. We haven’t had it changed in years and we’re delighted with the finish.

“Our store was looking the best it ever has inside, so we needed the branding to reflect that. In store, we’ve been really successful with our showroom changes, including decorating and furnishings areas to ‘create the look’ and help the customer visualise what our products can look like in a home scene.

The ongoing investment has also seen the business totally reform its website, which was one of the first implementations of the modernisation back in October 2021. Over a year on, the online side of the business has delivered success. Millie continued: “With the new website, we have a new look menu which makes it super simple to navigate. It was vitally important that our new website was not just an online selling platform, but more importantly another window into our gorgeous shop, a place for customers to get a glimpse into our ethos as well as picking up inspiration for their new home furnishings.

“Barretts of Woodbridge hopes the new branding will deliver a real boost going into 2023, with the business optimistic on the year ahead. “Like most businesses, we felt the Covid hit but we have had such amazing support from loyal customers to shop local. We’re feeling really positive for the future and hope the rebrand will give us that much needed boost,” Millie said.

“With gorgeous river walks and fabulous independent businesses, Woodbridge really is a wonderful place to visit, and it’s no surprise to us that Woodbridge is the 3rd happiest place to live in the UK! As a store, we’re always trying to keep things fresh and ‘on trend’ so who knows hat’s around the corner!”

Continued digital investment boosts sales at OKA

Furniture and accessories retailer OKA has reported a growth in turnover as sales climbed towards £40m.

According to its latest filed accounts for the year ended 1 January 2022, total sales rose 26.5% to £37.7m from £29.8m year-on-year. Gross profit increased from £20.4m to £27.8m, while pre-tax losses resulted at £1.8m, narrowing from a loss of £8.9m recorded in the previous year.

Stated within its report, OKA said Adjusted EBITDA was £9m, up from £3.6m, which delivered a margin of 23.7%, improving from 12.1%, while cash reserves resulted at £2.1m, down from £8.7m, due to investment in technology and software and increased inventory levels.

OKA added that significant investment has been made to develop OKA USA, with marketing investments implemented to build the OKA US brand presence and the appointment of key marketing and commercial personnel.

“Whilst the initial impact on revenues from the pandemic was severe, the website and digital channels soon picked up a significant proportion of the lost sales from showrooms, and underlying trends such as consumers investing in their homes during lockdown, combined with a buoyant housing market, meant that the overall impact on sales was limited,” the company said.

“OKA’s customers are navigating between channels more than ever before, combing offline and online interactions within single purchases through a seamless customer journey. Significant IT investments have allowed the company to take advantage of the latest technology to interact with customers.”

Fabb grows sales and market share

During the period under review, Fabb opened four new branded stores, which are “performing extremely well and proving to be amongst the top performer’s week by week”, while a further three opening since the year end, the latter of which will open this month. The business also removed flooring from its offer to allow an increase in density of its better performing ranges within the stores.

BFM launches new membership category for retailers

Furniture retailer Anglia Home Furnishings Ltd, trading as Fabb Furniture, has reported a growth in sales as turnover jumped by almost £10m.

According to its latest filed accounts for the year ended 31 March 2022, total sales rose 47.5% to £30.4m from £20.6m in 2021. Gross profit increased from £9.4m to £13.2m, while pre-tax losses resulted at £3m, widening from a loss of £738,000 recorded in the previous year.

Rising raw material prices and freight costs pressured its margin throughout the year, while the company ended the period with finished goods stock for sale valuing over £6m, up from £3.9m in 2021.

Stated within its report, the company said: “The business has already seen a much-improved trading performance year-on-year and is already reporting an EBITDA improvement to the same point last year of over £1m, in just the first five periods.

“With an improving margin, up 2.5% versus previous year, lead times and increased market share, with growth at plus 23% like-for-like against 2019 pre-pandemic levels for the first five periods. Due to this strong trading, we expect a much-improved financial year results for March 2023.”

The British Furniture Manufacturers is launching a brand new membership category for furniture retailers to recognise companies committed to selling and promoting British made goods.

The BFM’s new retailer membership category, which will be open to retailers across the UK, is being launched at the January Furniture Show 2023.

It builds on the success of the Autumn 2020 ‘Buy British’campaign, which worked with retailers to enable them to signpost customers to products which were made in Britain, using a striking red, white and blue logo on swing tags, posters, vehicle livery and web pages.

Sean Holt, MD of the BFM, said: “We’ve been asked for some time to develop a new membership category for retailers, which recognisesthose dedicated to selling and promoting British-made goods. We have further enhanced this by developing a new Code of Practice that will demonstrate a commitment to customer service as well as show a pathway towards net zero carbon. Retailers must sell products made by British furniture manufacturers in the UK, although not exclusively.

“As an Approved Retailer, they will receive marketing material to help them inform customers of British-made products, and gain access to a range of BFM benefits to support their commercial activities and staff members.”

Sofology launches new TV advert with Helena Bonham-Carter - use image of sofology

The Corner London has launched an all new campaign ‘Nothing Feels Like’ for sofa retailer Sofology.

The work is the second campaign from the brand that stars Helena BonhamCarter and the first from The Corner, following their pitch win back in April 2022.

With the current economic climate meaning that consumers are spending more time at home, the campaign looks to accentuate the unbeatable feeling of a Sofology sofa – better quality, better design and better value.

The TV and press feature Helena in an upside down world; she arrives home with everything the wrong way up – including her dog! As she moves through her hallway and into the living room, we see that the only thing that is the right way up is her Sofology sofa in the center of the room. As she admires the sofa, falling backwards over it, we see everything from her point of view – finally the right way up and how it should be, showing that nothing feels like coming home to a sofa you love.

Sebastian Brown, Director of Creative at Sofology said: “We wanted this campaign to really focus on magnifying what it feels to ‘feel at home on a sofa you love’. This campaign is a beautiful continuation with Helena Bonham Carter, whilst retaining a quirky sense of humour. The TV ad spearheads the Nothing Feels Like campaign, and lays a strong brand communication platform through the customer journey.”

Helena Bonham-Carter said: “I loved the central idea that I live in an upside down house. It’s straight out of Alice in Wonderland which is one of my all time favourite books and I try to inject a bit of it into my daily life. It also strikes me as emotionally true: the world can confuse and discombobulate you but when you get home and get a chance to lie down on your sofa then suddenly everything can feel the right way up again.”

ScS acquires sofa brand Snug out of administration

Going forward under ScS’s ownership, the company aims to further grow the business.

ScS also recently opened two new stores, one in York at the Clifton Moor Retail Park and a second in Swindon at the Bridgemead Retail Park, over the Christmas period, taking its portfolio to 100 stores nationwide. The intention is for the two new stores to be fully refitted in the spring. They will be developed into ScS’ new ‘Concept’ store format. The York store is also ScS’ first collaboration with Bensons for Beds, with both retailers trading from the unit. The ScS team is said to be ‘excited’ to be working with the Bensons team.

Upholstered furniture and floorings retailer ScS has announced that it has acquired the brand, domain names, website, intellectual property and stock of Snugsofa.com (Snug) from the administrators of Snug Shack Limited for consideration of £875,000.

Snug, a digital-first sofa and sofa-bed business specialising in modular and re-configurable sofas, was founded by Robert and Peter Bridgman in 2018 as Europe’s first sofa-in-a-box concept. Snug also operates from one store in Leeds. ScS expects there to be an opportunity to add Snug concessions to the Group’s stores, providing the brand with “significantly improved national visibility and penetration”.

In a statement ScS said: “The Board believes the acquisition of Snug represents further progression in ScS’s strategy. Snug’s strong brand and differentiated digital-first offering will complement ScS’s existing proposition, further diversifying its customer base and increasing market share. Snug’s innovative approach to social engagement and digital marketing will be an asset to the wider ScS business while Snug will benefit from the Group’s expertise, supplier relationships and scale.”

Snug has 53 colleagues and will join the Group as part of the acquisition. For the 12 months to 31 December 2022, Snug expects revenues of c£20m.

Details behind the sale of online bed retailer from administration

Online beds retailer Sleep Design Ltd, trading as Crazy Price Beds, has been sold out of administration for a sum of £195,000. The business has been sold to portfolio businesses of Baaj Capital LLP after it entered into administration on 22 November 2022. The transaction was led by Carl Jackson, chief executive, and Richard Easterby, director at Quantuma.

With a business strategy of buying beds and mattresses directly from manufacturers and thus reducing the normal costs passed onto customers, Sleep Design was founded in 2008 and was bought by its existing shareholders in 2014. The company, which imports its beds from China, operates from one site in Cannock and employs 22 people.

The company reported a turnover of £8m in 2021 but, due to global factors, including the pandemic, the rising costs of shipping and materials, and the weakening pound against the dollar, the retailer was unable to sustain trading.

Ahead of entering administration, the retailer accumulated debts of £349,000 to secured creditor HSBC Bank, which is expected to be repaid in full from company cash of £454,000. The HMRC are also owed around £511,000 as a preferential creditor. Administrators said it is anticipated that there will be sufficient funds to pay a distribution, although unsecured creditor claims, totalling £835,000, are not expected to receive any distribution.

Before the sale of the company was completed, administrators received 40 parties expressing an interest, with non-disclosure agreements being sent to 36. Of these, five parties entered into negotiations with a range of offers being tabled from £30,000 to £305,000. The higher offer was seen as the best route forward.

However, upon acceptance of the offer, the prospective purchaser requested additional time to complete their due diligence. This was not an option due to the time-frame of proceedings with the prospective buyer reducing its offer.

Administrators then reverted to the second best offer of £195,000, which had now become the best offer available following the aforementioned reduction. This was accepted with funds paid in full on completion. The sale of the business, to BW Gardening Limited and Book Library Limited, will see the business’ sites continue to operate, and secures all 22 jobs. There is no connection between the purchasing companies and former directors.

Breaking the sale down further, Book Library Limited acquired the goodwill, IP, website and trademarks for a sum of £10,002. BW Gardening Limited acquired the office furniture, plant and machinery, vehicles, customer contracts, vendor’s records, stock and other assets for a sum of £189,998.

Administrators added that the sale was less than the agents in-situ valuation of £426,000 due to stock, where a large amount was incomplete sets of beds that were held for spares and not entire beds that could be sold on to consumers.

Independent furniture retailer grows sales to almost £100m

Details of interior décor supplier administration and sale revealed

Distributor of interior décor and wallpaper Arthouse Ltd was sold out of administration for a sum of £1.5m.

Samuel Woodward and Timothy Vance, both of Ernst & Young LLP, were appointed as joint administrators of Arthouse Limited on 20 December 2022.

included claims of £1.1m to HMRC, £265,000 to its parent company, £190,000 to DH, £2.5m to Northedge Capital and £5m to Clydesdale Bank. Administrators anticipate that secured claims from Clydesdale are expected to receive a distribution of £1.2m. As for unsecured creditors, there will be insufficient funds to make any distribution.

Independent furniture retailer Barker and Stonehouse has reported a growth in turnover as sales were just shy of £100m. According to its latest filed accounts for the year ended 27 March 2022, total sales rose 28% to £97.6m from £76.1m in 2021. Pre-tax profit resulted at £8m, up from £4.9m.

Stated within its report, Barker and Stonehouse said that sales benefited from stores being open for most of the year and increased demand for home furnishings following the pandemic. Gross margin dropped by 0.9%, reflecting rising costs in the supply chain.

Year end cash rose by £3m to over £12m and stockholding increased by £6m to over £19m. In the year, the business built a new state of the art warehouse for over £3.5m, as well as entering into an agreement with Fenwick to open concessions in Newcastle and Bentall’s Kingston Upon Thames stores. The partnership has also seen products listed on their website.

Furthermore, the company acquired a freehold site at the Metro Centre in Gateshead and is currently building a new flagship store, which is set to open in Spring 2023 on 7 April. Ahead of the opening, its Newcastle city store will close in March due to the investment at the Gateshead store, which is larger and will still include a Fenwick concession.

Flooring textiles supplier Esselle Retail Ltd acquired Arthouse, transferring 36 jobs in process, due to there being “considerable synergies” between the businesses. Ahead of Arthouse’s administration, the business had sales of £23.6m.

Detailed in newly filed documents on Companies House, Arthouse was adversely impacted by UK market headwinds including supply chain disruption, inflation and reduced consumer spending in the home décor channel in the build up to its administration.

The company looked to enter into an Accelerated Merger & Acquisition (AMA) from July 2022 with the first offer received the following month. Other parties entered discussions and by November another offer was tabled to acquire the share capital of Arthouse as a going concern. Furthermore, Esselle Retail submitted two offers, one being for similar as aforementioned and the other for business and assets via a prepack sale in administration agreement.

The sale process progressed slower than expected.Following further due diligence, the other party withdrew their offer, resulting in Esselle Retail being the only offer suitable. Administrators were then appointed which was immediately followed up with the sale of the business and assets for a total sum of £1.55m. Of this amount, £10,000 related to the sale of Arthouse shares in its USA company.

As for creditors, total claims valued a combined sum of £10.9m. These

IKEA recalls swivel chair due to breaking reports

Swedish furniture retailer IKEA has issued a product recall on a swivel chair after safety concerns were highlighted. The recall affects IKEA’s ODGER swivel chair after receiving reports of the chairs breaking at the star base of the leg.

In a statement, the company said: “IKEA asks customers who have purchased the ODGER swivel chair, anthracite colour with date stamps before and including 2221 (yyww, located underneath the seat, moulded in the material of the chair), to stop using it and return it to an IKEA store for a full refund.

“IKEA has received reports of the chairs breaking at the star base of the leg, therefore posing the risk of a fall and injury. As such, we are issuing a recall for the affected date stamps. Customers are kindly asked to return it to an IKEA store for a full refund. We apologise for any inconvenience this may cause.”

Independent furniture retailer relaunches with rebrand

Home furniture independent and ecommerce retailer Roseland Furniture has unveiled a new look and feel with the release of its rejuvenated platform.

In a project aptly named “Roseland Relaunched” the Roseland team have collaborated with ecommerce specialists UWP (Underwaterpistol) to bring to life the first of several planned changes for the business. With revised and enhanced branding, user friendly design and upgraded functionality, Roseland is proud to introduce its allnew website to their customers.

Tristan Lynch, CEO, said: “Roseland Relaunched is the first significant external change we are making to the brand. We’re proud to bring this project to life and excited for our customers to experience the new website. It marks the beginning of big change for the company and we’re looking forward to launching many new products and services.”

Sussex Beds opens first Surrey store with fresh rebrand

Independent beds and mattresses retailer Sussex Beds has opened its 14th store in the UK, celebrating its first shop in Surrey and new look. The new 6,000sqft store is situated in the former M+Co shop on High St in Horley and officially opened on the 14 January 2023.

John Rayment, Operations Director at Sussex Beds, said: “Horley completed at the end of November and in just over six weeks was transformed from a shut M&Co to our first new branded store, featuring our change from black and orange, to teal and white.

“We have also installed a training room in the old store room for our stores over that side of Sussex and Surrey. The opening was a great success with very high footfall across the weekend. We had lots of lovely comments on the look of our new store too, which is great to hear.”