BGF completes successful exit of Furniture Village
Investment company BGF has successfully exited its investment in Slough-based Furniture Village, the UK's largest independent furniture retailer, following a share buyback by the business.
Furniture Village is an award-winning family business that has been selling quality sofas, dining furniture and beds across the UK for over 30 years. Its first store opened in Abingdon in 1989.
BGF – formerly the Business Growth Fund – has invested £12 million in the business across two successive funding rounds, the first in 2014, followed by a second in 2015.
Over the eight-year investment partnership, Furniture Village has used the growth capital to increase its store footprint from 40 to 55, and also to bolster its logistics, IT and digital infrastructure.
The exit has yielded strong returns on BGF’s original investment and follows a period of consistent, profitable growth for Furniture Village.
The move allows father-and-son duo Peter and Charlie Harrison (pictured) to continue to build on the success of the business, with the aim of further strengthening its market position.
Outside a substantial holding by the company’s employee benefit trust, the Harrison family is now the sole shareholder of the business.
Peter Harrison, Chief Executive, Furniture Village commented: “It has always been a lifelong ambition that the business would be wholly owned by the family.
"We have now realised that dream thanks to our fantastic people and our principle partners who have all contributed to our journey – my original business partner David Imrie, Peter Grant of Cadogan Estates, Jane Vinson at BGF and Jim Hodkinson our longstanding Chairman.
“Charlie and I have a very strong vision for where we would like to take the business next. It is based on a highly collaborative and loyal relationship with our people, excellence in customer service and always being able to offer the highest quality product at good value prices to our customers nationwide.”
Jane Vinson, Head of Portfolio, South at BGF said: “BGF has backed Furniture Village since 2014, providing £12 million of growth capital across two successive funding rounds.
"Over the last eight years we have supported the business with its acquisitive growth strategy providing the financial and strategic support needed to roll-out new sites, invest in new technologies and scale its e-commerce platform.
“During BGF’s investment hold period, the company has experienced significant growth and this deal marks an exciting next step for the company. This deal demonstrates BGF’s flexibility on exit routes, and we wish Peter and Charlie Harrison and the entire team all the best for the future.”
Charlie Harrison, Commercial Director, of Furniture Village added: “In recognition of our team, their strength and success, Furniture Village has also decided to introduce an Employee Benefit Family Partnership which will be a means of sharing the results of great performance with everyone in our special business.”
The news comes ahead of the imminent opening of its 55th UK store in Colchester on Boxing Day.
