DBL Capital has completed a management buy-in (MBI) of Stockport-based online homeware retailer Home Space Direct with a six-figure investment from NPIF II – FW Capital Debt Finance, which is managed by FW Capital as part of the Northern Powerhouse Investment Fund II (NPIF II).
The transaction was also supported by additional funding from LGC Industries to invest in and grow the online e-commerce part of the Home Space Direct business.
The NPIF II - FW Capital funding has also provided working capital to support the business as it enters its next phase of growth. This includes streamlining the company's supply chain and digital infrastructure from its Stockport base, alongside expanding its product offering, including its core homeware portfolio of bedding, curtains and soft furnishings.
Home Space Direct is a well-established British online homeware retailer. Founded in 2007, the company draws on over 40 years of industry experience to provide home furnishings suited to various styles and budgets. In addition to shopping directly through its official website, the business also operates as a trusted marketplace seller across several major UK retail platforms including Debenhams and Tesco.
David Adamson, Managing Director at Home Space Direct, said:"Home Space Direct has built a strong reputation for offering quality homeware backed by excellent customer service, and we're excited to build on those foundations. With more than 25 years' experience growing leading retail and e-commerce businesses, I know the opportunity to grow the brand through continued investment in our digital platform, customer experience, and product offering.
Alongside strengthening our partnerships with leading suppliers, we'll also develop our own exclusive product ranges and explore carefully selected acquisition opportunities that complement the business and support our long-term growth ambitions.
The investment from FW Capital gives us the platform to accelerate these plans, and we're excited about the future as we continue building Home Space Direct into one of the UK's leading online homeware retailers."
Barry Wilson, Investment Executive at FW Capital added: "The new leadership team led by David is focusing on scaling the company’s e-commerce platform and building a sustainable, long-term growth model in the highly competitive home textiles sector. The team have lots of new ideas and a firm desire to grow the business further. It’s fantastic to assist the business during this critical period and bring investment that is helping them to scale up."
Sue Barnard, Senior Investment Manager at the British Business Bank said:“Through the Northern Powerhouse Investment Fund II, we’re proud to be backing well-established Northern businesses as they continue to grow and evolve, while working alongside private investors to unlock additional capital. Investing in businesses like Home Space Direct as they enter their next phase helps to drive innovation through product development and technology advancement, crucial to creating forward-thinking, scalable businesses.”
The £660m Northern Powerhouse Investment Fund II (NPIF II) covers the entire North of England and provides loans from £25k to £2m and equity investment up to £5m to help a range of small and medium sized businesses to start up, scale up or stay ahead.
The purpose of the Northern Powerhouse Investment Fund II is to drive sustainable economic growth by supporting innovation and creating local opportunity for new and growing businesses across the North of England. The Northern Powerhouse Investment Fund II will increase the supply and diversity of early-stage finance for the North’s smaller businesses, providing funds to firms that might otherwise not receive investment and help to break down barriers in access to finance.
