Independent furniture retailer the Furniture Village has secured £6 million to expand across the country.
The company, founded in 1989, secured the cash from the Business Growth Fund and will use the investment to open up new stores and revamp its current portfolio including its two stores in Plymouth and Exeter.
As part of the deal BGF will take a minority stake in the business and Jon Simon will join the board as BGF’s representative.
Furniture Village marked its 25th anniversary of trading this month and is still independently owned.
The business has 40 stores across the UK, employs 760 people and generates revenues of £200m per annum.
Co-founder and CEO, Peter Harrison said: “Having achieved a significant improvement in trading performance in our last financial year ending March 2014, which has continued strongly into this current year, this is an ideal time for us to expand and further enhance our presence, both in terms of physical stores and online.
“We are appreciative of BGF's support and confidence, and beyond the many other potential benefits that will arise from our new and close association, this substantial investment will enable us to accelerate our plans and for Furniture Village to remain at the forefront of British retail in its sector.”
Mr Simon, senior investment manager, with BGF added: “This represents an exciting opportunity for BGF to back a well known British brand with a strong heritage and a track record of profitability.
“We are supporting a clear growth strategy based on selective store roll-out and investment in new software.
“This in turn, will improve the operational efficiencies of the business and increase the focus on e-commerce, all of which will add to the customer experience.”
He added: “Over 25 years Furniture Village has developed into one of the UK’s leading furniture retailers and we look forward to supporting the management team as the company embarks on this next phase of growth.”