OAK Furnitureland, which has two showrooms in Northern Ireland, has been rescued from collapse in a pre-pack administration deal.
The Swindon-based chain has been bought by hedge fund Davidson Kempner Capital Management for an undisclosed fee.
They say they will undertake a review into the future of the chain's 105 showrooms, and are declining to rule out job cuts and closures as negotiations with landlords and suppliers take place.
Oak Furnitureland currently employs 1,491 people across its business and started reopening sites this week as part of a phased plan.
The chain opened its first outlet in Northern Ireland at Shane retail park in Belfast in 2015, and followed that with a store at Crescent Link in Derry, which between them employ around 40 staff.
Davidson Kempner Capital Management and Deloitte completed the pre-pack administration on Monday evening – a fast-track system for rescuing struggling firms.
But creditors including landlords and suppliers have been critical of pre-packs in the past for their secrecy, leaving many who are owed money to find out about the rescue only after it has happened.
It remains unclear how much creditors – including the taxman – will lose out, although a report prepared by administrators at Deloitte is due to be published within the next two months, under administration laws.
Oak, like its competitors in the home furnishing sector, has been hit hard by the coronavirus lockdown, with non-essential retailers forced to close their doors.
Founder Jason Bannister, who was Oak Furnitureland’s biggest shareholder, was said to be supportive of the sale and will have no involvement in the business’s future.
The most recent accounts with Companies House show the company made a pre-tax profit of £9.7 million for the year to September 2017, down from £15.2 million a year earlier.
Oak Furnitureland chief executive Alex Fisher, who will remain with the business, said: “The deal announced puts us on a stronger financial footing, enabling us to drive forward our clear plan for growth.”
Rob Harding, joint administrator at Deloitte, said: “We've 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.”
Since the coronavirus lockdown was announced in March, chains in the UK including Monsoon have gone through a pre-pack administration processes.
