Ex-Timpson FD buys into rugs business
ENTERPRISE Ventures and PHD Equity Partners have backed a £3.2m management buy-in at online rugs retailer Modern Rugs.
Martin Tragen, former group finance director of Manchester retailer Timpson, has invested along with Mike Seery, the former head of corporate recovery at KPMG in the North West.
Mr Tragen will run the business while Mr Seery has become a non-executive director.
It means a partial exit for 33-year-old founder Ben Dale who will continue to hold an equity stake and will stay on as the technical and marketing director.
He set up County Durham-based Modern Rugs in 2004 as a marketing graduate using contacts introduced to him by his parents Peter and Sue who ran a carpet business in Bishop Auckland. The company now operates from a 5,000 sq ft facility at Aycliffe Business Park.
Martin Tragen spent 19 years at Timpson as it grew from 160 to over 800 shops with services expanding from cobbling to watch repairing. Prior to the buy-in he has been involved in a number of turnaround projects, the most recent being Total Fitness, the health and fitness club chain.
The transaction was funded by Manchester-based Enterprise Ventures, investing from the Coalfields Growth Fund, and Daresbury-based PHD Equity Partners – founded by corporate finance firm Dow Schofield Watts – along with the incoming management team.
Wayne Thomas, who led the deal on behalf of Enterprise Ventures, said: “Ben has done a remarkable job of building a business which he started in his bedroom into the UK’s leading dedicated internet rug retailer. Martin’s appointment will bring additional structure that will be required for further growth, which will in turn allow Ben to focus on the digital and creative side.”
Craig Richardson of PHD Equity Partners said: “Since being introduced to Ben by Martin and Mike eighteen months ago we immediately liked the business model and what Ben had achieved on his own. We look forward to working with Ben, Martin and Mike in the future to build on the success to date.”
Ian Riggs of Hill Dickinson provided legal advice to PHD and Enterprise Ventures. Richard Saleh of Salehs provided legal advice to Martin Tragen and Mike Seery. Ben Dale was advised by Avondale Group.
