Sold
Hilco is delighted to offer for sale the business and assets of a distinguished online retailer in the children’s furniture and lifestyle sector (the “Company”).
A distinguished UK-based brand, the Company has carved a niche in offering imaginative and innovative products for home and lifestyle. Almost a decade old, the Company has distinguished itself through its distinctive product offerings, ranging from unique home furnishings to quirky gifts, including its own-brand offerings, catering to a clientele that appreciates creativity and uniqueness. The Company’s journey from a small-scale operation to a multi-million pound retailer is a testament to its adaptability and visionary approach.
The Company’s brand appeal lies in its unique positioning in the market, celebrated for its eclectic mix of products that blend functionality, creativity, and whimsy. With a reputation for delivering a diverse range of intriguing and high-quality items, the Company has built a loyal customer base, with over c. 372k customer records and over 96k email subscribers held in the Company’s CRM. The brand’s strong identity not only differentiates it in a crowded market but also paves the path for ongoing success and potential expansion. The brand/business is further supported by its versatile and broad product range that taps into various consumer interests and ensures stability against market shifts in specific categories.
The Company’s own-brand children’s beds, mattresses, and furniture range are a significant highlight within its product portfolio, not only having expanded in sales in recent years but also seeing a remarkable improvement in gross margins. The core range of children’s beds has grown from £267k in sales in 2022 to £735k in 2023, with gross margins increasing from 30% to 44%. This impressive growth is complemented by the Company’s launch of a new range of mattresses and storage accessories, which are expected to further enhance margins and average order values. The mattresses, in particular, offer an average gross profit of 51%, while the upcoming storage accessories promise an average margin of over 60%. Additionally, the Company is introducing a sustainable range of beds made in Europe, aiming to increase market share while maintaining healthy margins. With their higher average margins, this focus on own-brand products positions the Company as a uniquely profitable investment opportunity in the children’s furniture market.
The brand has established an impressive digital footprint with a thriving e-commerce platform that generated c. £6m in revenue through 2023. Over the last 12 months, the Company’s average order value through the site was £441, with a returning customer rate of 14.82%. Further, the Company also enjoys a significant social media presence with over 81k followers across various platforms, including Instagram, Facebook and Pinterest, enhancing its reach and customer engagement. The potential for physical retail outlets presents an exciting avenue for growth, reinforcing its market position.
This acquisition is a rare opportunity to be part of a unique and established brand in the home and lifestyle sector, gaining a business with a distinguished brand, a devoted customer base, and a forward-looking vision.
Please register your interest and direct any questions in the first instance to Myles Hall (+44 (0) 7513 830 357, mhall@hilcoglobal.eu) and Alexander Muir (+44 (0) 7593 562917, amuir@hilcoglobal.eu) of Hilco, who will be able to provide access to further information on the signing of a confidentiality agreement and answer any questions you have at this stage. Bids are to be directed in writing to Hilco. Terms and conditions related to the sale can be provided on request.
