Last month, the 40-store retailer enlisted Hilco to conduct an evaluation of its assets, but a time frame for a refinancing is unclear.
Fabric Warehouse – owned by private equity firm Lloyds TSB Development Capital (LDC) – opened its first two concessions in Homebase stores last month.
The 1,500 sq ft concessions are in the DIY giant’s Bournemouth and Solihull stores. Fabric Warehouse plans to open a further 30 concessions over the next two years within Homebase and similar retailers.
A Fabric Warehouse spokesman said that LDC wants to accelerate its growth with new initiatives. “Fabric Warehouse has specialist knowledge on textiles and that adds value to retailers such as Homebase, which carry DIY and home furnishing products,” he added.
“There are discussions at the moment with similar retailers. Other strategies to expand are also being examined.”
Fabric Warehouse was bought by LDC from Homestyle in 2004, along with its sister brand Rosebys, for£51 million. Subsequently, Rosebys was sold to Indian textile giant GHCL last year for£27.1 million.
Separately, Rosebys has bought four stores from the administrators of soft furnishings retailer Zoom The Loom. The purchases mark the start of Rosebys’ growth plan and business re-focus.
Owner GHCL has been conducting a strategic review of the retailer and wants to extend its product offer and invest in its in-store experience.
As part of this process, Rosebys is undergoing a branding review, seeking to increase its store space and expand the average size of its stores. The objective is to provide a range of quality home furnishings and service with an emphasis on lifestyle, while retaining Rosebys’ core value proposition.
Rosebys chief executive Mark Dyson said: “We have recognised the changing needs of the consumer while retaining the core strengths of our business.”
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