Doncaster sofa firm DFS snaps up clutch of Multiyork stores

Doncaster-based DFS said it has struck a £1.2m deal to buy eight store leases from administrators of Multiyork Furniture as well as the intellectual property rights of Multiyork, including the Multiyork trademark, product designs, domain names and marketing databases.

Staff from the stores will be offered roles within DFS.

But it added that administrators will stop operating the Multiyork brand after February 18 as part of the deal.

It comes after 50-strong store chain Multiyork collapsed in late November, putting more than 500 jobs at risk.

DFS will convert six of the bought stores into the Sofa Workshop brand and two will trade as DFS.

Gill Stewart, chief executive of Sofa Workshop, said: “We are delighted to take this opportunity to expand our store network, offering customers a local presence where they can experience Sofa Workshop’s exclusive range of modern, luxury, hand-made furniture.

“We very much look forward to welcoming the sales colleagues from Multiyork as part of our network of experienced store teams.”

Ian Filby, chief executive of DFS, added: “We are pleased by this positive outcome, which offers a clear opportunity to accelerate our growth plans for Sofa Workshop, as it continues to go from strength to strength.”

The deal comes following recent turbulent trading at the Doncaster-based firm.

Pre-tax profits fell 22 per cent to £50m in the year to July 29, while revenue edged up just 0.9​ per cent​ to £762.7​m, as consumers reined in spending on big ticket items against the backdrop of a stalling economy.

Big ticket items are usually the first thing consumers cut back on when feeling the pinch.

Earlier in the year, DFS completed the acquisition of rival firm Sofology as it looks to broaden its product and brand appeal, Mr Filby said.

The Doncaster-based firm bid £25m for Sofology, which has 40 stores around the UK.