Furniture retailer Lombok has been bought out of pre-pack administration by its management for the second time in two years.
Leonard Curtis has been appointed administrator to Lombok, in a tough market for big ticket retailers.
Lombok said “certain assets are being sold immediately to its management team and existing investors”. Its primary investor remains Privet Capital, which backed the deal.
The retailer said it is continuing to trade with “customer orders and deposits placed at all stores unaffected”.
Retail Week revealed on Thursday that Lombok had filed an intention to appoint administrators as it embarked on a store closure programme that has resulted in nine store closures out of its 12-strong estate.
The retailer’s store on Tottenham Court Road remains open, as well as its outlet store and House of Fraser concession. It will also focus efforts through its existing online channel.
Lombok said: “In order to secure the future of Lombok in very challenging trading conditions, Lombok is in the final stages of an essential restructuring which is refocusing the Company on its successful online offering and key flagship stores.”
Lombok had 19 stores before it was bought out of pre-pack administration in July 2009 by Privet Capital, which initiated a turnaround of the business, hiring Stuart Lewis as managing director and Martin Toogood, former chief executive of collapsed furniture chain Ilva, as chairman. Five stores were closed at the time of the purchase.
In the year to August 1 2010, Lombok revealed a profit before interest, tax and exceptionals of £1m compared with a loss of £1m the previous year. Like-for-likes grew 7%.