Retailer plans to open more shops in wake of investment

The company, which sells contemporary furniture and home accessories, said it would open the stores in the next four years, expanding its total estate to 54.

The announcement yesterday followed an investment from private equity house Key Capital Partners, which was led by Leeds-based partner, Andy Gregory.

Aamir Ahmad, founder and managing director of Dwell, said: "This capital injection from KCP represents the next milestone in Dwell's development, having strengthened the management team last year in anticipation of both this investment and our aggressive four-year growth strategy.

"KCP will prove to be a key strategic partner as we look to boost brand awareness and expand the business, beginning with five new stores in the UK in 2011. While consumer spending has been negatively impacted by the downturn, our market has remained reasonably robust, standing at 17bn in 2009 and forecasted to grow to 18.8bn in 2015."

Mr Gregory added: "The challenges facing UK retail over the last two years have been well documented, but Dwell has emerged from the turbulence in a far stronger position due to its first class management team and proven product offering."

Dwell has grown from a single store in South London into one of the UK's most fashionable multi-channel furniture retailers.It currently has 19 stores, including its recently-opened flagship store in Tottenham Court Road, London, and concessions in leading department stores Selfridges and House of Fraser.

Total sales from Dwell's high street, online and catalogue channels totalled more than 25m in the year to January 31 this year.