22-store furniture chain bought for £1 by China’s largest upholstery manufacturer; massive UK expansion planned

21st April | buyout | Easyliving Furniture is to become a subsidiary of Chinese upholstery manufacturer Kasen International Holdings in a move likely to spark a rapid store expansion programme.

The retailer currently has 22 stores across the South and Midlands, but the Chinese firm wants to take advantage of low rental rates to quickly grow the chain in the UK. Easyliving, a trading name of Sofas UK, had sales of £11.6m in the 12 months to 30th April 2008, but made a loss of £1.3m.

Kasen is to buy the British retailer for a cash sum of £1 and will take on its liabilities of some £10.7m, which includes rent, customer deposits and trade creditors. The Hong Kong Stock Exchange listed company is China’s largest leather goods manufacturer and the biggest upholstery supplier in the country by sales volume.

Easyliving Furniture has stores in prime retail locations including Bristol’s Cribbs Causeway and Croydon’s Purley Way, and is a stockist of brands including Cavendish, Collins & Hayes and Airsprung Beds.