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Private investor syndicate Hotbed ploughs £3.25m into flooring retailer, helping the firm's founders to restore it back to health after administration in 2008.
New investment could spell expansion for Floors-2-Go. Pic courtesy of the Local Data Company
The firm's expansion will be overseen by former B&Q chief executive and chairman Jim Hodkinson, whose appointment as Floors-2-Go chairman was also announced today.
The original founders of Floors-2-Go, the Hodges family, have also invested £3.5m into the company, having re-acquired it from administrators in 2008.
The Hodges founded Floors-2Go in 1999, expanding from a single site to more than 100 retail outlets by 2004. The business was then bought by a small investment bank, floated on AIM, and then bought by a private equity firm.
The retailer is currently operating from 94 sites. However, the injection of capital provided by Hotbed's network of private investors, will bolster Floors-2Go's capital position and enable further expansion.
Hotbed chief executive Gary Robins said: "The history of Floors-2-Go could be used as an MBA case study. The business' acquirers abandoned the highly efficient and responsive customer-service driven model that made the firm so successful, which contributed to the firm's rapid demise at a time when the property market was still riding high."
He added: "With the Hodges back in control, even in a much tougher retail market, the company's fortunes have already changed. The appointment of Jim Hodkinson, the man who made B&Q the UK's largest DIY retailer is fantastic news, bringing a wealth of experience. I am delighted that our investor members can play a part in helping the business back to its former success."
Joining Mr Hodkinson on the board is Rob Marsh, who has been appointed non-executive director of the firm. Mr Marsh has extensive experience of product sourcing and supply-chain management, having successfully acquired and built up Hexel Group, which specialised in serving major retailers, such as Tesco, Marks and Spencer and Argos.
Floors-2-Go co-founder and ceo Rob Hodges said of the investment: "We were impressed by Hotbed's innovative approach and the value that they demonstrated with introductions fro their network of investor members. The additions of Jim Hodkinson and Rob Marsh will be key to helping the board achieve its key strategic ambitions."
He added: "Floors-2-Go is looking forward to working with its new partners and strives to cement its position on the high street as the UK's biggest wood and flooring specialist."