Fitted furniture manufacturer and retailer Hammonds has received an investment from HSBC UK and Frontier Development Capital (FDC) to support a management buyout that brings 100% shared ownership of the business to third-generation family members Richard Hammonds (group CEO) and Mark Hammonds (group director).
Founded in 1926 in Hinckley, Leicestershire, Hammonds supplies fitted bedroom, kitchen and home office furniture to both the home improvement and new-build markets. With 89 showrooms across the UK, Hammonds manufactures over 250 orders each day from purpose-built facilities in Hinckley, and distributes these nationally via 15 regional service centres. The business has 837 members of staff, and achieves an annual turnover of over £85m.
Richard Hammonds comments: “I am personally delighted to have led this MBO process that will now enable us to continue to build upon the long-standing success of the company. Over the last two years we have introduced a successful succession and management team to provide the continuity and strength to enable the group to carry on developing our range and product portfolio in the future.
“The MBO provides us, as third-generation owners, with the ability to protect our well-established brand and values, as well as offering continued opportunities for growth. We are currently introducing new and exciting fitted bedroom and kitchen ranges, and I look forward to developing the business further and supporting our long-standing relationships with both customers and suppliers."
Pictured: Richard Newman (regional debt financing at HSBC), Mark Jones (partner of Jasmin Advisory LLP), Mark Hammonds, Richard Hammonds and Graham Mold (head of growth capital at Frontier Development Capital)