NEWS | Round-up


Clive Christian Furniture sold to sales director after ‘challenging’ conditions


ICONIC LUXURY kitchen producer and


retailer Clive Christian Furniture has been sold out of administration following a ‘period of challenging trading conditions’. Former global sales director Phil Cole (pictured) and Jim Denos, the owner of three US Clive Christian Furniture franchises, have bought the business and assets through a newly formed company, Luxury Interiors Manufacturing Ltd. The move is said to have saved 66 jobs.


The company entered administration on April 8 and Julien Irving of Mazars LLP and Christopher Brindle of Campbell Crossley & Davis were appointed as joint administrators.


Administration came, they said, following “a period of challenging trading conditions, impacted further by the well documented global supply chain issues in the wake of the pandemic and other macro forces”. Irving said: “We are pleased to complete on the successful sale to a new owner of such a noteworthy British manufacturer and retailer. The company has been adversely impacted by challenging trading conditions. The sale will provide continuity of operations and the company will retain all its highly skilled workforce and continue trading internationally.”


Will the rising cost of living kill the home improvement boom?


WITH THE cost of living rising every day, the KBB industry and financial experts are undecided about whether this looming crisis will affect the home-improvement boom and if so, how.


Experts in the KBB and retail sectors say that retailers should be cautious and expect the current boom to slow down as the cost of living impacts consumer spending. However, some expect the boom to continue to the end of the year as the mid to top-end market will most likely be unaffected. Much of the recent home-improve- ment boom has come from people staying at home and not being able to travel. However, with foreign travel opening back up again, the home- improvement industry is battling the travel industry for consumer pounds. KPMG found in a recent survey that of those planning to spend their savings on big-ticket items, 38% said it would be on a holiday, almost a thrird (32%) said home improvements, and 21% said home appliances or electronics.


The British Institute of Kitchen, Bedroom and Bathroom Installation (BiKBBI) has recommended ‘caution’ as CEO Damian Walters warned spending on expensive items, such as home improvements, is likely to fall. Walters said: “The home-


4


improvement sector has flourished over the past two years, but we must not assume that the nation’s current rate of investment in their homes will continue into 2023. The data we are seeing clearly demonstrates a decline in consumer confidence, with predictions that the cost of living will continue to rise throughout 2022. It’s highly probably that, as disposable income reduces, the decline we are already seeing in big-ticket spending will continue.”


Managing director of Kitchen Bath-


room Buying Group (KBBG), Bill Miller, is optimistic about the boom continuing, as he has been for many months. KBBG members are still experiencing a high level of enquiries, and therefore the buying group predicts good sales to continue well into 2022.


Miller said: “The rising cost of living will certainly hold many consumers back from undertaking a large renovation project and will compete with their finances. There will be a sense of caution on spending large amounts of money, while consumers get to grips with their monthly expenditure while energy, fuel and food prices continue to rise. However, this could spur consumers on to consider making their home future- proof for the long term, by investing in


new and sustainable technology in an effort to reduce ongoing costs.” There is some hope for the mid to high-end retailer who will be less likely to be affected by short-term changes, believes Jayne Barber, founder of analyst JKMR. Barber said: Over the next 12 months, disposable incomes will be affected by rising utility costs and taxes, and consumer confidence in committing to ‘big-ticket’ purchases may start to waver.


“Rising interest rates will also potentially reduce budgets for major refurbishment. These impacts, however, are likely to disproportionately affect mass volume retailers, rather than kitchen studios that are more focused on higher-end budgets.”


For those taking a broader view of


the market and not just focusing on the


KBB industry, British Retail


Consortium’s chief executive Helen Dickinson has seen the rise in the cost of living hurt consumer confidence. Dickinson explained: “The rising cost of living has crushed consumer confidence and put the brakes on consumer spending. Sales growth has been slowing since January, though the real extent of this decline has been masked by rising inflation. Big-ticket items have been hit hardest, as consumers reined in spending on furniture, electricals and other homeware; compounded by delays on goods coming from China.” • See analysis, pages 38-40.


· June 2022


Clive Christian Furniture Ltd was established in 1978 by designer Clive Christian and, in 2019, was subject to a management buyout led by managing director Guy Newton with support from David Dare, former owner of Shaws of Darwen.


Dare joined Clive Christian Furniture as chairman but the new owners of the company have confirmed that he is not part of the new set-up. Cole, managing director of Luxury Interiors Manufacturing Ltd, said: “I am pleased to assume ownership of Clive Christian Furniture. The business is regarded as the originator of statement, opulent rooms for the home and this will not change. Synonymous with exceptional quality, craftsmanship and skill,


I am proud to continue the work of the business and in doing so provide continuity for the workforce, suppliers and our global network of dealerships and partners.”


In March 2021, Clive Christian Furniture unveiled its first major new range of kitchens in over a decade with its outdoor Garden Kitchen, followed up in February this year by its new more contemporary Opus No 1 range.


Creditors should contact the administrators via Angela Ramzan at angela.ramzan@mazars.co.uk.


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