28 July 2020
Oak Furnitureland becomes the latest business to announce store closures and job cuts amid the coronavirus crisis. The homeware retailer announces plans to shut 27 shops, leaving 163 jobs at risk.
The retailer has begun the consultation process with landlords of the affected stores (listed below) and the 163 employees risking redundancy.
- Bath (clearance)
- Brent Cross
- Chippenham (clearance)
- Cardiff (clearance)
- Cumbernauld (clearance)
- Leeds Crown Point
- Merry Hill
- New Malden
- Southend on Sea
- Sutton in Ashfield
- Weston Super Mare
It has been confirmed that all customer orders and deliveries will be fulfilled as normal.
CEO, Alex Fisher said: “The current proposal to close some showrooms forms part of a company-wide review that we are undertaking as a business. We are committed to driving forward a plan for our future growth, and although this has been a difficult decision, it is the right one for the business in these uniquely challenging times.”
16 June 2020
Oak Furnitureland has been acquired by global investment management firm, Davidson Kempner Capital Management. The sum agreed on as part of the deal is undisclosed.
This pre-pack administration deal, undertaken with the help of Deloitte, secures a future for the company, rescuing it from collapse.
Alex Fisher, the companies’ current CEO will continue to lead the management team. All 1491 employees have also been transferred as part of the deal. Suppliers, landlords and other stakeholders will continue to be worked with in order to prepare the business for a future post-Covid – one which includes looking to grow.
The new owners will review each of its stores as negotiations with landlords and suppliers occur. Customers with outstanding orders will not lose out and any deposits already paid will be honoured.
Also included in the deal is substantial new funding provided by Breal Zeta Commercial Finance, David Kempners’s affiliated asset-lending platform. This is in support of the management’s business plan.
This comes just in time as its 105 stores and warehouses can reopen since government guidelines permit.
Fisher spoke on the news: ‘’The deal announced today 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, joint administrator from Deloitte thanked all those involved in the deal and wished the best successes to the management team in driving the business, going forward.
Categories: Pre Pack Administration Process and Procedures