Retail veteran set to take the reins at DFS

The Doncaster-based group said former Alliance Boots trading director Ian Filby will take the reins, months after it was bought from founder Lord Kirkham by private equity firm Advent International for 500m.

DFS has since been trying to find a chief executive to work alongside chairman Richard Baker, chief operating officer Jon Massey and finance director Bill Barnes.

Mr Filby has thirty years' retail experience, primarily with Alliance Boots, where his most recent roles were retail brand development director and trading director. There he worked alongside Mr Baker, former Alliance Boots chief executive and Advent partner, for four years.

Until January he was also interim chief executive of Nectar, the UK's leading loyalty programme.

Mr Filby said: "I am delighted to be joining the DFS team. I am looking forward to both leading the company through its next period of growth and to working with Richard once again.

"DFS is a strong brand with a unique culture and I believe that it has an exciting future ahead."

Lord Kirkham's sale to Advent in April came despite repeated denials he planned to relinquish control. The sale netted the Tory peer an estimated 300m.

Lord Kirkham stepped down as executive chairman, more than 40 years after he set up the firm in a former billiard hall in Doncaster. The private equity firm added the sofa chain to its portfolio of more than 150 investments in 17 countries.

DFS has weathered the recession while rivals such as SCS Upholstery and Land of Leather fell by the wayside.

The group's relative size, own manufacturing capabilities and market-leading reputation helped it perform well and gain market share during the downturn.

DFS operates from 74 sofa stores across the UK and employs more than 2,600 people.

As well as its stores, the group has three manufacturing centres for sofas at Carcroft in Yorkshire, Long Eaton in Nottinghamshire and Alfreton in Derbyshire.

Mr Baker joined Advent last year and before that worked with Boots before its merger with Alliance Unichem in 2006, where he is widely credited with reviving the firm's fortunes. Before that he spent nine years at Asda in a variety of positions, becoming chief operating officer in 2002.

He said: "Having worked with Ian at Boots for four years, I have had first-hand experience of his skills and capabilities. Ian is perfectly suited to the role of chief executive of DFS.

"His core strengths are in the areas of marketing and brand development, product and range management, store format development as well as online, which are all key elements of the DFS business model."

Lord Kirkham retained a financial stake in DFS but Advent is believed to be working on a refinancing deal to buy out the last remaining debt interests.

Lord Kirkham is believed to have retained a significant financial interest through a vendor loan note, where he effectively lent the private equity firm money to buy the company. Vendor loan notes have become an increasingly common feature during the credit crunch.

A spokeswoman for DFS declined to comment further.

Part of the furniture

The adopted son of a miner, Graham Kirkham founded DFS as Northern Upholstery in 1969.

He started selling furniture after leaving Maltby Grammar School without the qualifications to pursue his first choice of career as an RAF pilot.

He rented a room above a snooker hall in Doncaster and started making furniture upstairs and selling it downstairs.

In 1983 Lord Kirkham bought one of Northern Upholstery's biggest suppliers, Direct Furnishing Supplies, from the receivers.

Northern Upholstery was renamed DFS and Lord Kirkham floated the business in 1993 before taking it private again in 2004 for 507m.

In April, Lord Kirkham sold DFS to private equity firm Advent International for 500m.