Dawson sells Manchester bedding arm
TEXTILE group Dawson International has sold its loss-making Manchester -based bed linen subsidiary.
Ardwick-based Dawson Home Group has been bought by Brookmann Home for £4m in cash.
DHG designs and sources private label bed-linen from around the world for a number of well known retailers in the UK.
It is also behind the Vantona brand, which is sold to to wholesale customers. The business employs 53 staff and will continue to operate from Ardwick.
As part of the deal Brookmann has undertaken to purchase certain inventories related to the DHG business which are currently held by another Dawson company over a period of six months.
The retained inventory of approximately £2.5m will be supplied to DHG on a consignment basis at cost, being paid for monthly as used, with any balance being settled after six months.
In the 12 months to January 1 2011, the unaudited results for DHG showed an operating loss of £1.5m after exceptional charges on turnover of £30.3m.
Perth-based Dawson said the deal would help it address “long term strategic objectives”, including a possible resolution of its pension issues.
Chairman David Bolton said: “This transaction is a positive result for all parties. DHG has experienced challenging trading conditions in recent years and, more recently, has suffered from increasing cotton raw material costs.
“Brookmann has strategic alliances with many key manufacturers around the world who will help to mitigate these cost pressures, whilst DHG offers Brookmann a well-known and respected UK outlet for its overseas manufacturing capabilities. The combination with Brookmann is expected to strengthen DHG’s competitive position.
“The conclusion of the sale allows the Group to focus on its core cashmere activities.”
