DFS to sell Sofa Workshop brand to Halo
DFS has entered into an agreement to sell its Sofa Workshop business to luxury furniture group Halo.
The company said the deal is subject to regulatory approval from the FCA which is expected to be received in due course.
Tim Stacey, DFS chief executive, said: “Over the course of the past few months we have reviewed our strategy and plans across the group with a focus on ensuring our brands are in the best possible position to support the group in maximising its return on capital.
“After careful consideration, we have decided to sell Sofa Workshop to Halo. This transaction represents a great opportunity for Sofa Workshop and I’d like to thank all our colleagues for their hard work and commitment since the business was acquired by the group seven years ago and wish them every success in the future.”
At the end of June, Sofa Workshop had gross assets of £10.2 million but in the 48 week period to 30 June made a pre-tax loss £2.9 million. The business is being sold on a cash, working capital and debt free basis.
The total consideration for the transaction is £0.3 million payable in cash on completion.
DFS said the sale will mean it will no longer have to fund Sofa Workshop’s operating losses and will enable it to take advantage of significant value creation opportunities in its core activities.
Stacey added: We will remain focused on the core elements of our strategy, namely accelerating investment in technology and omnichannel initiatives for our two scale brands, DFS and Sofology, while ensuring our complementary Dwell brand generates a consistent return.
“As the clear market leader with strong recognition of our brands, high showroom sales densities and advantageous vertical integration, we feel well-positioned to drive shareholder returns.”
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