DFS secures sale of The Sofa Workshop Limited

DFS Furniture today revealed it has sold one if its businesses as part of a strategy to focus on its core brands.
By Greg Wright
Published 27th Aug 2020, 07:29 BST
Updated 27th Aug 2020, 07:32 BST
DFS Furniture plc has announced that one of its subsidiaries, DFS Furniture Company Limited, has entered into an agreement to sell the entire issued share capital of The Sofa Workshop Limited , to Halo Furnishings Limited.DFS Furniture plc has announced that one of its subsidiaries, DFS Furniture Company Limited, has entered into an agreement to sell the entire issued share capital of The Sofa Workshop Limited , to Halo Furnishings Limited.
DFS Furniture plc has announced that one of its subsidiaries, DFS Furniture Company Limited, has entered into an agreement to sell the entire issued share capital of The Sofa Workshop Limited , to Halo Furnishings Limited.

DFS Furniture plc has announced that one of its subsidiaries, DFS Furniture Company Limited, has entered into an agreement to sell the entire issued share capital of The Sofa Workshop Limited , to Halo Furnishings Limited.

The deal is conditional on regulatory approval from the FCA which is in progress and is expected to be received in due course, DFS said.

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In a statement, DFS said: "The gross assets of Sofa Workshop at 30 June 2019 were £10.2m, the loss before tax in the 48 week period to 30 June 2019 was £2.9m.

"The business is being sold on a cash, working capital and debt free basis. Following the disposal, the group will benefit from the reduction in the cash costs of funding Sofa Workshop's operating losses, elimination of the potential volatility in the profitability generated and it will allow the group to focus on executing the significant value creation opportunities in its core activities."

The total consideration for the transaction is £0.3m payable in cash on completion.

Tim Stacey, CEO commented: "Over the course of the past few months we have reviewed our strategy and plans across the group with a focus on ensuring our brands are in the best possible position to support the group in maximising its return on capital.

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"After careful consideration, we have decided to sell Sofa Workshop to Halo. This transaction represents a great opportunity for Sofa Workshop and I'd like to thank all our colleagues for their hard work and commitment since the business was acquired by the group seven years ago and wish them every success in the future.

"We will remain focused on the core elements of our strategy, namely accelerating investment in technology and omni-channel initiatives for our two scale brands, DFS and Sofology, while ensuring our complementary Dwell brand generates a consistent return.

"As the clear market leader with strong recognition of our brands, high showroom sales densities and advantageous vertical integration, we feel well-positioned to drive shareholder returns."

Established in 1976 in the United Kingdom and 2004 in Asia, the Halo Group is a significant player in the luxury furniture and lifestyle market.

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It has several brands including Timothy Oulton, Noble Souls, Outlaw, Bleu Nature and Freehand among others.

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