Sofa giant DFS Furniture sets out flotation plans

6th February 2015

img

DFS Furniture plans to list on the London Stock Exchange, targeting a valuation of up to £1 billion.

 

The sofa giant said that it is planning to raise £105 million from the listing and will use the money to reduce its debt by redeeming a £200 million bond.

 

DFS owners, private equity firm Advent, said it will sell at least 25% of the company to secure a main-market listing.

 

The company is the second largest furniture retailer in the country, after Ikea, and is famed for its aggressive sales policy where sofas are consistently sold at a discount.

 

Ian Filby, chief executive of DFS, said: ‘Our visions is to take DFS from being a great British business to a world-class business.

 

‘This is an exciting time for us as we continue to drive growth initiatives that are already underway against a backdrop of an improving macroeconomic environment. We see significant opportunity to further increase the group’s penetration in the UK, strengthen our position as the market leader for online upholstered furniture sales and we recently entered continental Europe with the opening of our first store in the Netherlands.’

 

The listing follows the listing of DFS’ smaller rival SCS Sofa last month – the listing valued the company at £70 million. Online furniture retailer Made.com is also considering floating, and is rumoured to be targeting a valuation of £500 million.

 

1 thought on “Sofa giant DFS Furniture sets out flotation plans”

  1. Ric says:

    ”….where sofas are consistently sold at a discount”

    Discount from what? Discount from a figure they conjure up as the future price of that sofa after the never ending sale.
    DFS are little more than a payday lender where they throw in a free sofa every 4 years when you sign a contract on the ‘never never’.
    Made.com run a similar discount scheme where they dream up a figure and then reduce it by ‘up to 70%’ to make you think you’re getting a bargain!
    Discount, my arse. They’re simply selling tat for as much as they think their clients will pay.

Leave a Reply

Your email address will not be published. Required fields are marked *