Lombok, the 19-store upmarket furniture retailer, has been bought out of pre-pack administration by a private equity-backed consortium.
The new consortium, led by the two turnaround specialists Privet Capital and Paradigm, and Lombok’s management team will take the retailer forward with 14 stores, but will shed 5 outlets. The accountancy firm KPMG was appointed administrator today.
The deal secures the majority of the 160 jobs at the retailer – and protects the deposits and delivery of all orders placed by customers. Pre-packaged administration allows a company to enter administration and then to be bought by new owners with reduced liabilities.
Founded in 1998, Lombok has suffered during the slump in the housing market and customers cutting back on purchasing its upmarket furniture and homewares accessories. Privet Capital and Paradigm have taken a majority stake in the company which trades under Lombok’s name. Lombok declined to comment.Reuse content