Sofa in a box brand Snug has officially relaunched following sofa retailer ScS’ acquisition of the company after it entered administration.
ScS 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.
Now, under new ownership, Snug Furniture Limited, the business has relaunched. A statement from Snug said: “Four years ago, we founded Snug as a vehicle for change; to answer customers’ needs for a comfy sofa to be delivered in days. We pioneered the sofa in a box category and disrupted a slow and outdated industry.
“By all accounts we were successful for the first three years, self-funding to £30m revenue with a team of 50 and a community of over 300,000. However, in 2022, we experienced unprecedented trading conditions due to a 700% increase in shipping costs, supply chain shortages and the cost of living crisis, resulting in a sharp contraction in consumer confidence and spending on big-ticket items.
“As a result, on the 10th January 2023, Snug Shack Limited went into administration, and the business and assets were purchased by ScS Group Plc (‘ScS’) under a new company ‘Snug Furniture Limited’.
“Joining the ScS family has meant that the Snug brand and team can continue to serve our customers by spreading the ‘joy of sofa’ to homes across the UK. Unfortunately, there were a small number of customers and suppliers that have been affected by these changes and for that, we are truly sorry. We continue to do everything we can to support customers, old and new, through this time.”
Kyle Rowe, Chief Marketing and Digital Officer (ScS) added: “After a transitional time for customers and the team, delighted to have Snug in the ScS family and back, servicing their customers. As part of the ScS group, we look forward to ensuring Snug remains #1 in the UK modular sofa market and see the brand and product as entirely complimentary to our proposition. A new Snug is back with the same ambitions, to deliver an excellent product and service. Wishing the team the very best and thanking customers new and old for their support.”