Garden furniture retailer saved from administration

Garden furniture retailer Moda Furnishings has been acquired out of administration in a rescue deal by furnishings group Giomani Designs.

Sam Woodward and Tim Vance, both of Ernst & Young LLP, were appointed as joint administrators of Moda Furnishings Ltd on 14 July 2023.

Following the appointment, the business and certain assets was sold to Giomani Designs Limited, saving all 75 jobs with the company continuing to trade under the new ownership.

As part of the deal, Giomani Designs, which also trades as online beds retailer and more recently online homewares retailer Cox + Cox, has acquired Moda’s head office and six showrooms, which are located in Manchester, Caterham, Chelmsford, Cheltenham, Milton Keynes and a pop-up in Leeds.

A statement from administrators confirmed: “On 14 July 2023, the Moda entered administration and Sam Woodward and Tim Vance, partners of EY Parthenon’s Turnaround and Restructuring team, were appointed as joint administrators. The appointment was made by the Company’s directors in accordance with Paragraph 22(2) of Schedule B1 to the Insolvency Act 1986.

“Shortly following their appointment, the Joint Administrators completed a sale of the business and certain assets of the Company to Giomani Designs Limited and the business is continuing to trade under new ownership.”

Commenting on the acquisition, Giomani Designs said in a short statement: “Moda is a well-established retailer with a strong brand and market-leading product. We are pleased to be investing in the future of the business and look forward to welcoming Moda’s employees into the Giomani group.”

Moda saw sales boom during the pandemic and subsequent lockdowns, with revenues rising 41% to £33.5m and pre-tax profit resulting at £5.8m for the year ended 31 October 2021.

In the period since reporting, Moda said demand softened due to the cost-of-living crisis, high levels of competition and increased costs.

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