How do you go about preserving established furniture brands when their owner wants to diversify in another direction? This was the challenge for newly formed Nathan Furniture Group as it sought to continue the success of H Morris & Co Limited.
Needing an inflow of working capital to help fund stock purchase, it created Morris Furniture Brands Limited who turned to business financier, Bibby Financial Services.
With an initial £400,000 funded against existing stock, the business has now secured long-term funding from Bibby made up of a £1.4m invoice discounting agreement and £500,000 in trade finance.
Morris Furniture Brands designs, imports and distributes high quality living and dining room furniture across a UK network of independent and high street retailers. The business produces mainly oak and upholstered furniture under its three brands ‘Morris’, ‘Relaxateeze’ and ‘Zone’.
The newly formed entity is entirely owned by furniture producer, the Nathan Furniture Group, whose customers also include Laura Ashley and Furniture Village.
Commenting on the new business, Nicholas Radford, Chairman of Morris Furniture Brands Limited and the Nathan Furniture Group said: “This is an exciting time for us as we look to take on what is already a successful business with fantastic brands, and move it onto the next level.
“To help form Morris Furniture Brands, we needed an initial injection of cash for a business that was already rich in stock. Working with Bibby Financial Services we were able to secure funding to purchase this stock and to fund ongoing operation, securing the future growth of the new business.
Explaining the choice to partner with Bibby Financial Services, Nicholas said: “The team at Bibby understand our business and provide a finance solution that suits our growth ambitions.
“With backing from Bibby and their flexible funding approach, we’re in a fantastic positon to take our business to the next level.”
Kevin Craven, Corporate Director at Bibby Financial Services added: “The newly formed Morris Furniture Brands brings together two very strong businesses with great histories.
“There is real growth potential in the business over the coming years as it looks to harness its relationship with the Nathan Furniture Group. With this support we hope to grow our own relationship with the business as it becomes even more successful.”