Proactive Investors - Run By Investors For Investors

Smallbone of Devizes owner Canburg reportedly facing collapse

The furniture maker is said to have filed a notice of intention to appoint accountancy firm, Grant Thornton, as administrator
smallbone of devizes
High street retailers have been struggling

Canburg, the owner of bespoke furniture maker Smallbone of Devizes, is reportedly set to collapse into administration this week after falling victim to the high street downturn.

Sky News reported that Canburg, which also owns Mark Wilkinson Furniture, has filed a notice of intention to appoint accountancy firm, Grant Thornton, as administrator.

READ: Debenhams to close up to 50 stores after making record annual loss

A collapse of the company would mark one of the biggest corporate failures to be backed by the £2.5bn Business Growth Fund, which was set up by the UK’s largest banks following the 2008 financial crisis.

The BCF invested £8mln in Canburg in 2014 in return for a 20% stake. A recent filing from Companies House showed the BCF now held more than 25% of the shares.

Canburg, the BGF and Grant Thornton all declined to comment on the report.

Canburg founder Leo Caplan recently stepped down as chief executive and the company appointed Ian Gray as its executive chairman.

High street retailers have been struggling in the face of subdued consumer spending and tough online competition along with higher costs related to a rise in inflation, the minimum wage, business rates and rents.

A difficult retail environment has led to the collapse of Maplin and Toys R Us while other retailers have been closing multiple stores to cut costs, including New Look, Marks & Spencer Group PLC (LON:MKS), House of Fraser and Debenhams PLC (LON:DEB).

View full PROAC profile View Profile

Proactiveinvestors Timeline

Related Articles

January 29 2019
“With the geopolitical landscape remaining in flux, clients are looking for greater certainty from their marketing programmes which our agencies and data businesses are proving able to provide"
December 19 2018
Interim profits showed a modest recovery with the number of contracts signed rising to 77 from 74 a year earlier
mobile marketing
February 01 2019
The merger is structured as an offer by Taptica that will see it owning 50.1% of the enlarged group and Rhythm One owning the remaining 49.9%

© Proactive Investors 2019

Proactive Investors Limited, trading as “Proactiveinvestors United Kingdom”, is Authorised and regulated by the Financial Conduct Authority.
Registered in England with Company Registration number 05639690. Group VAT registration number 872070825 FCA Registration number 559082. You can contact us here.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use