Bed manufacturer Mammoth, is set to create new jobs and develop the infrastructure needed to drive growth at home and overseas after securing a six-figure investment from the North East Growth Capital Fund.
Mammoth will utilise the investment to help drive sales of its recently revamped product range, including its flagship Comfort collection, and has already secured a 40% increase in retail floor placements for the key winter trading period.
The funds will also enable Mammoth to recruit new personnel into roles that will be critical for the company’s future expansion: a new bedding manager, global sales project manager and customer service manager are set to join the firm this month.
The business will also be investing in new warehousing for its bedding collection, as well as a new European mainland international showroom, plans for which had been delayed by bad debt suffered as the result of supply chain issues and the challenges of Covid-19.
‘Mammoth’s mission to get people living longer, healthier and happier lives by enabling them to sleep better and sit more comfortably has never been more relevant than it is right now. There’s no doubt, through no fault of our own, we’ve been through a challenging period over the past two years and weathered some tough trading conditions, which were compounded by the unfortunate loss of suppliers, but it’s a testament to the team we have in place and the relationships we have built that we’re now in a position to secure investment and grow once again,’ says John Tuton, Mammoth ceo
‘Mike Hobson’s role [as md] in our turnaround has been critical and, with this funding in place, I’m confident that we are in the right place to accelerate our growth strategy. The response of our trusted retail stockists to the launch of our new Comfort mattress collection has been fantastic and early signs are that the year ahead will be Mammoth’s best ever, as we not only grow our UK footprint but also take Mammoth into new territories.’
The fund is managed by NEL Fund Managers. ‘Having worked closely with Mammoth both prior and throughout the pandemic, I’ve seen how forward-thinking and tenacious John and his team are in their business vision and financial diligence. Over the past two years, they have experienced a period of unprecedented turmoil as a result of the pandemic that would have seen most organisations go to the wall. It’s taken careful governance and a pragmatic turnaround plan to ensure that Mammoth continues to look forward to a highly successful 2024 and beyond,’ says Mark Wharton, NEL Fund Managers senior portfolio executive.
‘Mammoth is uniquely positioned in the furniture market as an organisation with a clear focus on health and wellbeing, which resonates with consumers more now than ever before. We’re excited to see them execute their growth strategy over the coming months and years with their restructured management team and a number of key partnerships in place.’
The North East Fund is a suite of five venture capital and loan funds which was established in April 2018, to invest £153m in around 600 North East businesses in the period to December 2024. The fund managers provide business development advice and investment finance to small and medium sized enterprises based in the seven Local Authority areas of North East England: Northumberland, North Tyneside, Newcastle, South Tyneside, Gateshead Sunderland and County Durham. The programme encourages investment in and the commercialisation of new technologies, including low carbon technologies, as well as stimulating new business creation, private investment and entrepreneurialism in the North East, with a view to creating over 2,500 new jobs. The North East Fund has overall responsibility for the programme, which is delivered through five separate funds. The North East Fund has been established with funding from the North East of England European Regional Development Fund programme, the European Investment Bank and from returns on previous North East based, publicly supported investment funds. It is jointly owned by the seven North East local authorities.
Pictured: John Tuton and Mark Wharton
