Veteran investor Holroyd backs Sofaworks

NORTH West retailer Sofaworks has sold a stake in its business to angel investor Bill Holroyd and the Greater Manchester Combined Authority (GMCA).

The deal, understood to be worth £5m will involve the Tyldesley family keeping a “significant majority shareholding” and the money raised will be spent on accelerating its growth as it hopes to expand its estate from 31 to 50 stores.

Both Holroyd – who was one of the early backers of Bolton-based  AO and GMCA have taken an identical size share of equity in the company based at Golbourne near Wigan.

Sofaworks chief executive Jason Tyldesley said: “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.

“We will target and grow our market share and develop our retail estate to over 50 stores within the next five years. “

Bill Holroyd, who was also a backed of Bury-based Millies Cookies before it was sold to Compass,  said: “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 GMCA is investing in the business as part of a programme supported by the Government’s Regional Growth Fund (RGF), which is designed to help companies create jobs.

Lord Peter Smith, leader of Wigan Council said: “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.”

Sofaworks, which has annual sales of more than £100m, was previously known as CSL Sofas, and uses a sloth called Neal in its TV advertising campaigns.

Alex Hartley at KPMG’s corporate finance practice in Manchester acted as lead advisor to Sofaworks in the investment.