DEALS & RESTRUCTURING

Furniture chain Dansk sold in pre-pack admin deal

Published 09.01.2012 06:00 | Last Updated 09.01.2012 06:00

The owner of circa £9m turnover regional furniture chain Dansk has completed a buyout of the company following a pre-packaged administration arrangement.

Skan-Dansk Design Ltd - the company behind the four-store south east retailer - was sold for £325,000 to La Galleria Furniture Ltd, with funds to be paid in instalments over the next 12 months.

Both Skan-Dansk and La Galleria have directors and shareholders in common. Besides IP, the deal includes the transfer of 57 staff and all the company's stock.

Lloyd Briscoe and Louise Baxter of insolvency specialists Begbies Traynor were appointed administrator on 23 December, with the company sold to La Galleria Furniture the same day.

Dansk, which saw sales decline from more than £12m in 2008 to just over £9m in 2010, had stores at Lakeside, Braintree, Rayleigh and Chelmsford, as well as a 30,000sq ft warehouse in Basildon.

La Galleria says all outstanding customer deposits - worth around £500,000 - will be honoured.