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"BUSINESS as usual."
That was the promise from ScS bosses after the Sunderland furniture chain was sold to a U.S. investment firm.
“It is a new beginning,” said chief executive David Knight.
“The ScS name continues as before – it is very much business as usual.”
Under the deal, parent company ScS Upholstery plc has gone into administration and A Share and Sons Ltd – the trading arm which actually runs the company’s stores – has been sold to an affiliate of Sun European Partners, a division of U.S.-based Sun Capital Partners.
The deal will secure the jobs of ScS staff, including 200 people on Wearside.
ScS has been hit hard by the downturn in high street spending, reporting disappointing results over Christmas and the May Day Bank holiday.
The firm was forced to look for new sources of funding when its credit insurance was withdrawn last month.
Chairman Mike Browne said: “Having considered all options open to us, it was apparent that a substantial, long-term and immediate investment was required to secure the future.
“The sale is expected to provide this necessary investment and protect the business’s employees, trade creditors and customers, as well as helping secure the future of a number of its suppliers with workforces in the UK and continental Europe.
“We now have sufficient liquidity to protect our employees, our customers and our suppliers and secure the future growth of ScS.”
Paul Daccus, Sun European Partners vice-president, saidd: “We look forward to working with ScS to position the business for long-term growth and viability, all the while guiding the business through economic headwinds.”
He added: “We strongly believe that the business is a great addition to Sun Capital’s portfolio of market-leading companies.”
Mick Thurlbeck, chairman of the North East Chamber of Commerce’s Sunderland committee, welcomed news ScS had been saved.
“This is evidence again that, provided confidence in product and staff is maintained, survival can be achieved,” he said.
Janet Snaith, head of the city business and investment team at Sunderland City Council, said: “We welcome further U.S. investment in the city which now totals 27 companies employing more than 6000 people.
“Obviously we’re pleased to see that SCS will continue to trade and provide excellent customer services and we look forward to their continued long and successful presence in Sunderland.”
Sun Capital has substantial expertise in the retail sector, with a portfolio that includes UK kitchen and bathroom retailer HomeForm Group and lingerie company DBA, with brands such as Playtex and Wonderbra.
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Thursday 24 May 2012
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