Hilco backed consortium buys loss making Habitat; Seller provides £45m in working capital

14th December 2009 | retail | Furniture and homeware retailer Habitat has been bought by Retail Investments, a consortium backed by retail turnaround specialists Hilco. Mark Saunders, the chain's chief executive, will stay on despite having tried himself to broker a management buyout.

Former owner ICAF, which also owns Ikea, has agreed to write off the firm's debts and provide the new owners with £45m in working capital. Hilco are also thought to be investing £15m into the business. Habitat has 35 UK stores and a similar number in mainland Europe, none of which are thought to be under immediate threat of closure.

The new owners may look to make cost savings elsewhere, with head office job losses mooted as well as an overhaul of the chain's 400 global suppliers.