Mid to high-end furniture retailer Lombok has been bought out of pre-pack administration by a consortium led by Privet Capital and Paradigm this afternoon.
14 stores out of 19 were bought, saving around 120 out of 161 jobs.
Chief executive William Landale will remain in his position, while founder Alex Cresswell-Turner will remain focused on product development.
Landale said: “Whilst the recession has hit Lombok, as it has many other homewares retailers, we have a great brand with significant opportunity to grow the business in the longer term. The existing management are fully behind the deal and we will now sit down with the new board to execute the strategy for the company.”
Steve Keating, a partner at Privet Capital and newly appointed Chairman of Lombok said: “It is very much business as usual for Lombok. All existing orders will be fulfilled, day-to-day operations continue as normal, our website remains fully functional and there will be no change to the trading name or store branding – in fact customers will notice little or no difference.”
Previous backer, Pi Capital, is no longer involved with the retailer.
Myles Halley, restructuring partner at KPMG, which handled the administration, said: “The speed with which the sale was agreed is a testament to the strength of the Lombok brand and secures the jobs of 124 staff with minimal disruption to operations - a positive result for all parties.”
Lombok is the latest retailer to hit the buffers in homewares and furniture sector. Land of Leather, MFI and Sofa Workshop have all hit the wall in the last year. Allied Carpets collapsed earlier this month.
All Lombok customer orders will be fulfilled in the normal course of trading.
Customers seeking information should contact Lombok’s customer support number 0870 240 7380.