Oak Furnitureland has reached a deal with global investment manager, Davidson Kempner Capital Management LP, to secure its future.
The retailer says the deal follows a sale process undertaken by Deloitte, includes substantial new funding provided by Davidson Kempners’s affiliated asset-lending platform, Breal Zeta Commercial Finance, in support of the management’s business plan, and will be executed via a pre-pack administration.
Existing Oak Furnitureland CEO Alex Fisher will continue to lead the management team, and all employees have transferred as part of the acquisition.
The new owner says that all customer deposits are protected and all existing customer orders will be fulfilled, while the management team will work with suppliers, landlords and other partners to prepare the business for the post-Covid-19 environment and position it for future growth.
Oak Furnitureland’s founder and principal shareholder Jason Bannister is said to be fully supportive of the transaction, which will see ownership of the business completely transferred.
The joint administrators at Deloitte were partners Rob Harding and Dan Smith.
Alex Fisher says: “The deal announced [yesterday] puts Oak Furnitureland on a stronger financial footing, enabling us to drive forward our clear plan for growth. We are a fantastic business with a loyal customer base and an omnichannel retail presence, and we are looking forward to working with our partners to ensure a successful future.”
Rob Harding adds: “We have been working closely with the management team under difficult market conditions to try and find a funding solution and the deal announced [yesterday] is a positive one which secures the future of the business. We would like to thank all of those involved in the transaction and wish the management team every success in now taking the business forward.”
The company operates 105 showrooms in the UK and employs 1491 people. Business operations will continue as normal as showrooms and warehouses begin to re-open in line with Government guidance from tomorrow (17th June).