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Lombok pulled out of pre-pack administration Monday, 15th August 2011
The furniture retailer has been rescued from pre-pack administration by its management for the second time in two years.
Lombok said that “certain assets are being sold immediately to its management team and existing investors.”
The retailer's store on Tottenham Court Road will remain open, as will its outlet store and House of Fraser concession. It will also focus efforts through its existing online channel.
Lombok said: “In order to secure the future of Lombok in very challenging trading conditions, Lombok is in the final stages of an essential restructuring which is refocusing the Company on its successful online offering and key flagship stores.”
The retailer had 19 stores before it was brought out of pre-pack administration in July 2009 by Privet Capital, which initiated a turnaround of the business, hiring Stuart Lewis as managing director and Martin Toogood, former chief executive of collapsed furniture retailer Ilva, as chairman. Five stores were closed at the time of purchase.
This time around, Leonard Curtis has been appointed administrator to Lombok.
In the year to August 1 2010, Lombok revealed a profit before interest, tax and exceptionals of £1m compared with a loss of £1m the previous year. Like-for-likes grew 7%.