Upholstered furniture and floorings retailer ScS has announced that it has acquired the brand, domain names, website, intellectual property and stock of Snugsofa.com (Snug) from the administrators of Snug Shack Limited for consideration of £875,000.
Snug, a digital-first sofa and sofa-bed business specialising in modular and re-configurable sofas, was founded by Robert and Peter Bridgman in 2018 as Europe’s first sofa-in-a-box concept, and has grown to become one of the largest retailers in this segment of the furniture market. Snug’s ethos is to offer a carefully curated choice of products in a range of colours and configurations, with quick delivery and excellent quality and customer service.
Although predominantly online, Snug also operates from one store in Leeds. ScS expects there to be an opportunity to add Snug concessions to the Group’s stores, providing the brand with “significantly improved national visibility and penetration”.
In a statement ScS said: “The Board believes the acquisition of Snug represents further progression in ScS’s strategy. Snug’s strong brand and differentiated digital-first offering will complement ScS’s existing proposition, further diversifying its customer base and increasing market share. Snug’s innovative approach to social engagement and digital marketing will be an asset to the wider ScS business while Snug will benefit from the Group’s expertise, supplier relationships and scale.”
Snug has 53 colleagues and will join the Group as part of the acquisition. For the 12 months to 31 December 2022, Snug expects revenues of c£20m. Going forward under ScS’s ownership, the company aims to further grow the business.
Steve Carson, Chief Executive Officer of ScS, added: “Snug is an exciting and young business with great potential. It has a strong and recognisable brand, a differentiated product and targets a market that complements our proposition. In that regard, it presents us with an exciting opportunity to further increase market share.
“We therefore, view it as a great strategic and cultural fit which reinforces our commitment to helping our customers create the home they love. We look forward to welcoming our new colleagues into the ScS family.”