The owner of upmarket furniture and flooring chain Oka says it is willing to invest millions of pounds into the company, if creditors agree to a CVA which is likely to see almost a fifth of its workforce see their jobs.
InvestIndustrial, the Italian private equity group which bought into Oka in 2018, is the owner of Design Holding: the B&B Italia, Flos and Louis Poulsen parent.
Under the CVA, drawn up by restructuring adviser Teneo and first reported by SKY News, one of Oka’s 13 Uk stores would close along with a distribution centre and head office.
Almost 40 of Oka’s 250 UK staff are expected to see their jobs go.
Lady Astor founded the company in 1999 as a mail order operation before it moved into bricks and mortar retail. She is no longer a director of the chain but is thought to remain a shareholder. Prior to the pandemic the chain saw expansion but since has had a mixed record.
‘The CVA forms part of a wider restructuring of the Oka group, which is supported by the company’s shareholder who has agreed to provide further funding to the company totalling £4m if the CVA is approved,’ says Gavin Maher, Teneo partner.
The company has also placed three of its US stores into Chapter 11 bankruptcy protection.