Family-owned retailer Sofaworks has confirmed a strategic partnership with investor, Bill Holroyd and the Greater Manchester Combined Authority (GMCA) to aid its ambitious growth plans for the future to deliver world class service and multi-channel growth, both at home and internationally. The business, which has a turnover in excess of £100m, has secured external capital investment and support from Holroyd and the GMCA in a deal that sees the significant majority shareholding continue to remain with the Tyldesley family.
Bill Holroyd, whose current investments include AO World, the online appliance retailer, Warrington Sports Holdings Ltd, and TD4 Limited, was formerly the Chief Executive Officer of Holroyd Meek and was also an investor in and Chairman of Millie’s Cookies, which was sold to Compass Group plc in 2003, and Chairman of and investor in Positive Solutions. Bill is Chairman of Onside Youth Zones and a Trustee of Save the Family. Alongside Bill’s investment, the GMCA will invest into the business, as a programme supported by the Governments Regional Growth Fund (RGF), which is designed to help companies create jobs. Both Holroyd's and GMCA’s involvement will help Sofaworks accelerate its growth strategy which will lead to further job creation on a local and national scale over the next three years.
Since the business re-branded in December 2013 to Sofaworks, significant investments have been made in opening new stores, improving the store estate, a new IT platform, re-organising store team structures and marketing communications. The business experienced a record Christmas and more recent trading is particularly buoyant with high double-digit like-for-like sales as Sofaworks continues to follow its everyday low price strategy. In a sector that is infamous for its high low pricing strategies and seasonal sales, Sofaworks has completely restructured its business to offer a more transparent, authentic and helpful shopping experience that this year sees new stores in Preston, Dundee, Cannock and Enfield.
CEO Jason Tyldesley says: “At Sofaworks we are on a mission to bring a more refreshing retail experience to this sector. We know customers find the sales, offers and tactics used in this sector misleading and we have been re-engineering our business to deliver a better, more transparent experience. This injection of capital investment will enable us to bring our philosophy to more and more customers at home and internationally. We will target and grow our market share and develop our Retail estate to over 50 stores within the next five years. Combining this with the current work we are doing to deliver a market leading e-commerce platform, it’s clear why we are really looking forward to working with our new partners who will bring a wealth of world class experience to our business."
Bill Holroyd says: "I am very excited about the growth opportunities at Sofaworks and am looking forward to working with Jason and the team to further build on this British family success story."
The leader of Wigan Council, Lord Smith, says: “The Greater Manchester Combined Authority is pleased to support Sofaworks’ ambitious growth plans. This partnership will bring greater economic prosperity to Greater Manchester, allowing the local business to thrive nationally and internationally – aiding our plans to strengthen Greater Manchester’s economic ties.”
Mike Blackburn, chair of GM LEP, says: “The regional Growth Fund is about identifying and investing in opportunities that will create long term economic growth and jobs for the people of Greater Manchester. To that end, we’re confident that this innovative funding approach with Bill Holroyd will help Sofaworks develop its home-grown success and generate a rewarding return on investment that will benefit our local economy.”
