Luxury furniture retailer Warren Evans has put itself up for sale as it prepares to absorb millions in losses.
Restructuring company Duff & Phelps has been drafted in to help with the sales process of the retailer’s 14 showrooms across London and southeast England.
The abrupt sale comes as reports emerge that Warren Evans is on track to make a loss of £2 million this year, despite sales of £27.3 million yielding profits of £837,500 last year.
A deal is expected to be made by the end of March, and Warren Evans has stated that a number of offers had already been received.
It added that the process was “not unusual” and that its market share was increasing rapidly.
In 2013 the retailer issued £2.5 million of retail bonds in order to fund the opening of new showrooms.
Around £2 million of the bonds, which carry and interest rate of 7.5 per cent are thought to still be outstanding.
This is likely to complicate the sales process, as potential buyers will be looking to purchase a debt-free company, especially in the struggling furniture sector.
Late last year, furniture companies Multiyork and Feather & Black both fell into administration after failing to find a buyer.
While Feather & Black was rescued from complete collapse after it was acquired by another company, Multiyork as commenced its wind-down process.
In an economy marred by stagnant wages and growing inflation, big-ticket items like furniture have been some of the hardest hit.