Sofology, the multichannel sofa retailer, has secured a £10m growth capital investment from BGF (Business Growth Fund). The Manchester headquartered business, known for its Neal the Sloth mascot and advertising campaign on Channel 4's Gogglebox, will use the funding to accelerate its expansion plans in the UK.
Sofology has 33 retail outlets across the UK and has opened four new stores in Preston, Enfield, Dundee and Cannock in the past 12 months. Under the leadership of chief executive Jason Tyldesley, the company generated sales of £143m in 2015, up from £102m in the previous year.
With BGF’s investment, Jason and his management team will continue the nationwide roll-out of Sofology retail outlets and expand its delivery fleet. A new online platform, featuring a website refresh and app, is also in development and focuses on providing a flawless online customer journey experience.
Chairman Bill Holroyd, the north-west based business entrepreneur, is providing support and guidance to the business as it embarks on its next phase of growth.
Jason Tyldesley said: “Over the past two years, we have made significant investment in the business. This has involved opening new stores and creating a technology-led multichannel platform.
“We now want to scale-up even further, and accelerate the pace of our roll-out. We felt that BGF – with its minority approach to investing – was the right fit for the team and for Sofology.”
Matt Widdall said: “Jason and his management team have a strong track record, a clear strategy for growth, and plenty of ambition. We are delighted to be partnering with the business by providing funding and support.”
The investment was led for BGF by Matt Widdall and Pinesh Mehta.