Northumberland furniture business spreads its wings

Northumberland-based furniture manufacturer, Northumberland-based bespoke furniture manufacturer, Delcor, is preparing to expand nationwide by starting a franchise, following a successful buyout funded by a £150,000 loan from Lloyds TSB Commercial.

Delcor, based in Seaton Delaval, produces sofas, chairs and footstools aimed at the top-end of the market, with a focus on high-quality furnishings and fabrics.

Employing 38 staff, the company also has showrooms in Altrincham, Cheshire, and on the fashionable King’s Road in the heart of Chelsea. It is now establishing a franchise company to expand across the UK.

Managing Director Rick Petini acquired the business from the previous owners in 2009, with the support of a £150,000 loan from his local bank.

Since the buyout, Delcor has grown substantially with the bank’s support and guidance, particularly with the re-opening of the Altrincham showroom, which had been closed by the previous management.

The company currently has a turnover of around £2.5 million, which it aims to boost to £4 million by 2012 through the proposed opening of 10 more stores.

“Although we are looking to franchise the company, we will still maintain control of the brand and styles because we manufacture the products,” says Rick.

“Franchising allows us to expand quickly and in a cost-effective way, capitalising on the company’s name and reputation.

“We also intend to keep control of customer service, because the level of service you provide is key to customer satisfaction. We are even able to re-upholster furniture in identical fabrics for customers up to 40 years after their purchase.

“The bank was more than happy to lend us the finances when they saw our business plan, and it was a relatively small sum for an acquisition and headroom facility compared to the size of the company turnover. Its ongoing support and guidance has been invaluable.”

The banks Relationship Manager for Newcastle and Northumberland, added: “Rick’s management of Delcor is a perfect example of how a sound local business with a good product and good management can compete on an equal footing with national companies.

“Our bank strives to help small enterprises develop, and it is extremely rewarding to see how the funding has been used to help a local business begin to expand nationwide and take the next stage in its development.

“Franchising is a good option for businesses looking to expand quickly without over-extending themselves or compromising their products or services. We’re also particularly suited to helping businesses considering this option, as we provide tailored funding products and specialist guidance for the franchise market.”