A UK upholstery manufacturer that supplies its products to department stores such as Harrods, Selfridges and House of Fraser has been saved from closure after it was bought by two of its management team.
A UK upholstery manufacturer that supplies its products to department stores such as Harrods, Selfridges and House of Fraser has been saved from closure after it was bought by two of its management team.
Collins & Hayes, which was established more than 130 years ago, has been bought by managing director Martin Huggins and finance director David Backler.
The financial terms of the deal have not been disclosed but Huggins and Backler were backed by businessmen Nick Gold and Matt Miller.
Huggins said this deal would help management to expand the business and strengthen its position in the upholstered furniture market. “The ability to continue trading will enable us to provide continuity of service to our customers and I am delighted that we have been able to safeguard so many local jobs.”
The business was sold by its administrative receiver KPMG, which was appointed to find a buyer for the company in April after it began to struggle in a very competitive market place.
The buy-out team was also supported by working capital provided by Leumi ABL. The finance, which totalled £2 million, took the form of invoice discounting, stock finance and plant and machinery finance.
Leumi’s chief executive, Paul Hird, said: “Leumi ABL’s ability to quickly grasp the funding requirements of the transaction and deliver the finance in such as short timescale enabled both KPMG and the management team to pull the deal together successfully.”
Gold and Miller were advised on the terms of their equity investment by Russell Nathan, a partner at H W Fisher & Company.
Nathan said the firm was introduced to the duo following a recommendation from an existing client. “The transaction, from start to finish, was carried out in one week.”
Collins & Hayes was originally bought from Yorkshire-based Aquarius Group six years ago and is today based in Hastings, Sussex.
