The £6 million transaction sees BGF back the business at the same time as it celebrates 25 years of its individual ownership. From its beginnings in 1989 under co-founder and CEO Peter Harrison, Furniture Village now has 40 locations and reported revenues of £200 million at last count.
As well as adding to its store count, the Slough-based business plans to invest in its technology so that its in-store customer experience is enhanced alongside the company’s e-commerce platform.
Harrison says that it is an ideal time for the business to expand its physical store count and online presence. ‘We are appreciative of BGF’s support and confidence, and beyond the many other potential benefits that will arise form our new and close association, this substantial investments will enable us to accelerate our plans and for Furniture Village to remain at the forefront of British retail in its sector,’ he adds.
According to a statement from the furniture business, it is positioned at the top end of the volume market and is the largest retailer of ‘leading brands’. As part of the deal BGF senior investment manager Jon Simon will be joining the board to oversee the bank-backed fund’s minority stake.
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Simon comments, ‘This represents an exciting opportunity to BGF to back a well-known British brand with a strong heritage and track record of profitability.
‘We are supporting a clear growth strategy based on selective store roll-out and investment in new software. This in turn will improve the operational efficiencies of the business and increase the focus on e-commerce.’
The fund is backed by Barclays, HSBC, Lloyds, RBS and Standard Chartered and has been investing since 2011.