// Oak Furnitureland’s future secured through acquisition by Davidson Kempner Capital Management
// The transaction was completed via a pre-pack administration deal
// All stores and employees have been saved and current CEO Alex Fisher will stay on
Oak Furnitureland has been acquired by a global investment management firm for an undisclosed sum as part of a deal to secure the retailer’s future.
Davidson Kempner Capital Management bought out the furniture retailer via a re-pack administration deal following a sale process undertaken by Deloitte.
The deal includes substantial new funding provided by Davidson Kempners’s affiliated asset-lending platform, Breal Zeta Commercial Finance, in support of the management’s business plan.
Current Oak Furnitureland chief executive Alex Fisher will continue to lead the management team and all 1491 employees have transferred as part of the acquisition.
Business operations will continue as normal as its 105 stores and warehouses begin to reopen in line with government guidance from June 17.
The retailer’s management team will also work with suppliers, landlords and other partners to prepare the business for the post-Covid environment and position it for future grow
Oak Furnitureland said the pre-pack deal was pursued after it had been affected by a challenging retail environment coupled with the adverse trading conditions imposed by the Covid-19 pandemic.
“The deal announced today puts Oak Furnitureland on a stronger financial footing, enabling us to drive forward our clear plan for growth,” Fisher said.
“We are a fantastic business with a loyal customer base and an omnichannel retail presence, and we are looking forward to working with our partners to ensure a successful future.”
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 today is a positive one which secures the future of the business.
“We would like to thank all of those involved in the transaction and wish the management team every success in now taking the business forward.”