Exclusive Upholstery Supply Agreement - Furniture Factory Outlets Ltd
During March, our Cavendish Upholstery division based in Chorley, Lancashire, concluded an exclusive UK wide upholstery supply agreement. The essence of this agreement is for Cavendish to commence the manufacture a range of upholstery products on behalf of a long standing, well known and respected UK upholstery business that ceased its own in-house manufacture and re-invented itself as a national ‘Sales Agency’. The company in question is a supplier to mainly the Independent retail sector, supplying fabric sofas and chairs but also importing and re-selling a range of leather upholstery. Turnover at its height was in the region of £3.5m p.a.
Under this new arrangement, the sales, marketing and product designs of this sub-contracted range will be managed by a newly formed entity, Furniture Factory Outlets, and will be virtually entirely independent of Cavendish management. FFO will operate right across the UK and Eire with a sales team promoting the Cavendish manufactured products, under the ‘Bymacks Upholstery’ label, to their pre-existing customer base.
It is expected that over the coming months and years this partnership will generate reasonable sales and profits for both Cavendish and FFO alike and will provide Cavendish with increased demand that should materially improve efficiencies and productivity.
Airsprung Expands Business
Airsprung Furniture Group plc, are pleased to announce that they have acquired the trading assets of Birmingham bed manufacturer Hush-a-Bye Beds Limited.
Hush-a-Bye Beds was formed some twenty years ago from a bed manufacturing business that traces its history back over 150 years and has built up a strong reputation for the supply of beds and mattresses to the Independent and specialist bed retailers, mainly in the south of the country. Hush-a-bye has developed a strong franchise in the Independent sector over the years, building on a foundation of well defined brand values, being quality, value for money, flexibility and service (which is second to none). In recent years Airsprung Beds and Hush have focused heavily and successfully on the major retailers in the home shopping market, our key opportunity with the Hush-a-Bye acquisition is to expand equally successfully in the Independent sector.
Peter Ball and Steve Wyatt, who will remain with the business for some months to ensure as smooth a transfer as possible takes place, were keen to find a new home for the company that would allow it to carefully expand to other geographical areas of the UK, something that can be readily provided by Airsprung. A new team headed up by Jim Murphy as Director and General Manager has been formed to provide the greatest of attention is given to Hush-a-Bye.
Hush-a-Bye will be manufactured and marketed alongside our Hush brand, under the umbrella of a newly formed trading division, The Sleep Collection. We will incorporate the Hush-a-Bye production into the existing facility in Hush and this will be supported by a dedicated Customer Service team.
Chief Executive Tony Lisanti commented that ‘this traditional, quality mattress manufacturer will assist the Airsprung Group in supporting and developing the Independent bed retailers around the country something we are strategically focussing on for the future, using both the highly experienced team of Hush-a-Bye Sales Agents and our existing dedicated sales team’.
We are delighted with Peter’s and Steve’s decision to join us and we look forward to working with them, the Hush-a-Bye Sales Agents and most importantly the customer.