Health and wellbeing brand Mammoth is set to create new jobs and develop the infrastructure needed to drive growth both at home and overseas after securing a six-figure investment from the North East Growth Capital Fund through regional fund management firm NEL Fund Managers.
Mammoth has built a reputation as an innovator in the mattress and seating market over the last decade by introducing new technologies such as Medical Grade foam and forging unique partnerships with the likes of the Chartered Society of Physiotherapy, Premier League football teams and leading universities.
Headquartered in Newcastle, Mammoth will utilise the investment to help drive sales of its recently revamped product range, including its flagship Comfort collection, and has already secured a +40% increase in retail floor placements for the key winter trading period.
The six-figure investment from the North East Growth Capital Fund, supported by the European Regional Development Fund, will also enable Mammoth to recruit new personnel into roles that will be critical for the company’s expansion.
A new bedding manager, global sales project manager and customer service manager are set to join the firm this month, and will work under new MD, Mike Hobson, who joined the business last July.
The business will also be investing in new warehousing for its bedding collection, as well as a new European mainland international showroom, plans for which had been delayed by bad debt suffered as the result of supply chain issues and the challenges of Covid-19.
Under the leadership of Mammoth CEO, John Tuton, and Mike Hobson, the next period of growth will see the brand "continue to innovate and partner with experts in sleep, comfort and performance".
John Tuton says: “Mammoth’s mission to get people living longer, healthier and happier lives by enabling them to sleep better and sit more comfortably has never been more relevant than it is right now.
“There’s no doubt, through no fault of our own, we’ve been through a challenging period over the last two years and weathered some tough trading conditions, which were compounded by the unfortunate loss of suppliers, but it’s a testament to the team we have in place and the relationships we have built that we’re now in a position to secure investment and grow once again.
“Mike Hobson’s role in our turnaround has been critical and, with this funding in place, I’m confident that we are in the right place to accelerate our growth strategy. The response of our trusted retail stockists to the launch of our new Comfort mattress collection has been fantastic and early signs are that the year ahead will be Mammoth’s best ever, as we not only grow our UK footprint but also take Mammoth into new territories.”
Senior portfolio executive at NEL Fund Managers, Mark Wharton, comments: “Having worked closely with Mammoth both prior and throughout the pandemic, I’ve seen how forward-thinking and tenacious John and his team are in their business vision and financial diligence. Over the last two years, they have experienced a period of unprecedented turmoil as a result of the pandemic that would have seen most organisations go to the wall.
“It’s taken careful governance and a pragmatic turnaround plan to ensure that Mammoth continues to look forward to a highly successful 2024 and beyond.
“Mammoth is uniquely positioned in the furniture market as an organisation with a clear focus on health and wellbeing, which resonates with consumers more now than ever before. We’re excited to see them execute their growth strategy over the coming months and years with their restructured management team and a number of key partnerships in place.”
The North East Growth Capital Fund was designed to create around 790 jobs in more than 70 regional firms over the life of the programme, and offers unsecured investments of up to £500,000 to established businesses looking to realise their potential. The overarching £153m North East Fund will provide financial support for more than 600 businesses, creating around 2500 jobs and delivering a legacy of up to £80m for further investment into the region.
NEL Fund Managers is also responsible for managing the £10m North East Small Loan Fund, which typically offers loans of up to £100,000 to businesses in Tyne & Wear, Durham and Northumberland.
Pictured: John Tuton and Mark Wharton
