Sharps Bedrooms sale saves more than 600 jobs

WOLVERHAMPTON-based Sharps Bedrooms has been saved from closure in a deal which preserves the jobs of more than 600 workers.

Homeform Group, which had owned Sharps, along with Dolphin Bathrooms and Moben Kitchens successfully sold the business back to its private equity owners, Sun European Partners in a pre-pack deal.

The new company has taken over 96 of the 160 former Homeform depots and will also guarantee existing deposits and warranties which were held by Sharps. The new business will be based at Sharps’ factory at Bilston.

However, Deloitte has now been appointed as administrator to the Manchester-based group and has closed down the remaining companies including Moben Kitchens, Kitchens Direct and Dolphin Bathrooms, although it is continuing to market the brands for sale. This has resulted in 557 staff being laid off.

Sharps’ managing director Kevin Smith said: “It is 100% ‘Business as Usual’ for Sharps. This is and always has been a successful and market leading business and we look forward to developing it further to make Sharps even better.”

Bill Dawson, joint administrator and a partner in Deloitte’s Manchester-based restructuring services team, said: “The business has suffered from the extreme pressures currently hitting retailers of high value items, as customers shy away from big ticket purchases such as kitchen and bathrooms.  

“The deal achieved with Sharps Bedrooms secures 627 jobs and also ensures that the new business is able to complete Sharps customer orders.  A number of sub-contract fitters and designers may also benefit from the sale.

“We are now in urgent discussions with the key stakeholders and interested parties of Moben, Dolphin and Kitchens Direct in an attempt to sell all or parts of the businesses.  We have written to all the employees with briefings to help them understand their position.”

Homeform has been struggling with debts and was preparing last month to appoint administrators.