Embattled Dwell eyes sale of the furniture chain
The upmarket furniture retailer Dwell is working with advisers to explore its options, including a possible sale of the business.
The 24-store chain has hired Argyll Partners to evaluate the best way forward for the retailer, following prolonged tough trading conditions in the home improvement market.
Furniture and DIY retailers have been hit by the sustained downturn in spending on big-ticket items and housing market transactions remaining significantly below historical levels.
It is understood that Argyll has already sounded out potential investors about buying Dwell at a knockdown price.
Even if the retailer is sold, a potential buyer could possibly seek to exit some underperforming stores, sources suggest.
Dwell Retail's pre-tax losses widened to £675,320 from £456,349 over the year to 27 January 2012, according to its latest accounts. Boosted by six new stores, the group's turnover rose by 3 per cent to £34.5m over the period.
Dwell was originally founded as a mail-order furniture business in 2003 by Aamir Ahmad, who stepped down as managing director in November after a refinancing. Rebecca Cotterell, the former chief executive of Adams Childrenswear, replaced him as managing director at the end of last year. The retailer's chairman Neil McCausland also left last year.
The private equity firm Key Capital Partners invested £5m in Dwell in August 2010.
In its annual report, Dwell said it had improved its financial position by exiting an onerous lease on a warehouse, and by refinancing, including a combination of converting loans to shares and fresh equity funding.
It said: "The combination of the steps taken by the company... provide a strong platform for the future growth of the company."
All parties declined to comment yesterday.
- 1 Howard Jacobson: Let’s see the 'criticism' of Israel for what it really is
- 2 Gingers face extinction due to climate change, scientists warn
Jennifer Lawrence face palms Emma Watson at Christian Dior show in Paris
Gingers face extinction due to climate change, scientists warn
Pamplona Running of the Bulls 2014: Briton critically injured in San Fermin festival
Elephant 'cries' while being rescued after 50 years of abuse in India
Google executive died on yacht after prostitute gave him fatal dose of heroin, say police
Sustained immigration has not harmed Britons' employment, say government advisers
British jihadist calls for 'flag of Islam' over Downing Street and Buckingham Palace
Australia facing international condemnation after turning around Sri Lankans at sea
7/7 memorial defaced on anniversary of 2005 attacks with ‘Blair lied thousands died’ graffiti
Even when it brutalises one of its own teenage citizens, America is helpless against Israel
There’s a nasty smell in the political air – and it’s coming from the Tories
iJobs Money & Business
£35000 - £40000 per annum + Benefits: Ashdown Group: HR Advisor - 6 Months Fix...
£37000 - £40000 per annum: Ashdown Group: IT Manager - Tolworth, Surrey - £40,...
£55000 - £65000 per annum + excellent package & bonus expectations: Real Staff...
£80000 - £90000 per annum + competitive: Real Staffing: A highly successful Co...