National retailer Oak Furnitureland has become the latest struggling firm within the sector to feel the force of the coronavirus-enforced lockdown. The company is set to be sold through a pre-pack administration as a result.
The chain is set to be acquired for an undisclosed fee by Davidson Kempner Capital Management, a hedge fund, as part of a fast-track insolvency process handled by international accountancy firm, Deloitte.
Founded in 2010, Oak Furnitureland now operates 105 showrooms across the UK and employs over 1,500 people.
It is believed that Davidson Kempner Capital Management will be reviewing the business, which could lead to store closures and job losses.
The Swindon-based company was founded by entrepreneur Jason Bannister, who was Oak Furnitureland’s biggest shareholder, however, he will have no involvement in the deal or the company’s future plans.
Oak Furnitureland CEO, Alex Fisher, said: “The deal announced puts Oak Furnitureland on a stronger financial footing, enabling us to drive forward our clear plan for growth.”
Rob Harding, Joint Administrator at Deloitte, said: “We have been working closely with the management team under difficult market conditions to try and find a funding solution and the deal announced … is a positive one which secures the future of the business.”