Furniture and homeware retailer Loaf has closed its maiden funding round with help from retail entrepreneur Peter Simon.

An undisclosed investment from the businessman behind Accessorize and Monsoon is hoped to ramp up revenue growth at Loaf.

Peter Simon has invested in the business, and taken a ‘significant minority stake’ in Loaf in the process.

Founded in 2008 by Charlie Marshall after experiencing difficulties in buying a bed, Loaf has reported average annual sales growth of 81 per cent over the last three years.

Loaf began life like many other businesses – borne out of frustration

Marshall is now hoping to grow the company from its current £20 million turnover to £100 million in the coming few years.

Speaking to GrowthBusiness on why he decided now was the right time to bring in an investor, Marshall says, ‘When I started the business five years ago I had five-year plan, get to £20 million in turnover and be profitable during that time.

‘Having got to the end of year five, it felt clear in my head that the business can be huge so made sense to take on money now to allow us to ramp it up more than we would otherwise have been able to. 

Commenting on the introduction of Simon as investor and shareholder, Marshall adds, ‘We had quite a few offers and the reason I went with Peter was that firstly he has massive experience having founded and run two of Britain’s biggest retail businesses, and secondly that he is an entrepreneur who gets the way I tick and what I’m about.’

Loaf expanded its offering in 2012 when it began retailing sofas and kitchen tables, items which it says now contribute a ‘significant part’ of sales. Spring of 2014 has been earmarked for an expansion into kitchen accessories and storage, console tables and home office furniture.

An increase in product ranges will be used to boost revenues at Loaf

To compliment its online service, the business will be opening what it calls ‘Loaf Shacks’ – retail designations around the country.