ScS eyes Sofa.com but ‘faces opposition from Sports Direct’
ScS has begun takeover takes with Sofa.com, the company that began opening concessions in House of Fraser stores after ScS said it would close its concessions as ‘the partnership was no longer beneficial to ScS.’
In the summer of 2018 Sofa.com’s parent investment firm CBPE sold the chain to LGT European Capital. In the year to 28 February 2018 Sofa.com had seen a pre-tax profit of £947,000 become a loss of £9.995m after taking an impairment charge of £8.34m.
Turnover had grown by £200,000 to £27.6m, which represents its nine branded showrooms and online sales. It also owns an upholstery factory in Poland.
According to Associated Press, Sports Direct boss Mike Ashley is keen to add the upholstery retailer to what would be a highly diverse group of high retail retailers, including sportswear, fashion, department stores, cycling and music if Sport Direct buys HMV from administration.
LGT invested in opening the HoF concessions and in late November the company’s directors said LGT would support the group for at least a year.
Sofa.com has House of Fraser concession in the chain’s Bluewater, Belfast, Reading, Victoria – London, Manchester, Glasgow, Bristol and Norwich stores: none of which had ScS concessions.
In October ScS said it would close its 27 House of Fraser concessions by the end of this month after sales slumped after the chain was bought by Sports Direct.