ScS Group ends talks to buy Sofa.com leaving Mike Ashley in the driving seat
Home furnishings retailer ScS Group said today it had ended talks with furniture retailer Sofa.com, leaving the way clear for Mike Ashley who is reportedly putting together a multi-million pound bid.
ScS said today it is “no longer in discussions regarding a potential acquisition of the business and assets of Sofa.com”.
Sky News reported that Ashley, who runs Sports Direct, was one of two bidders with ScS for Sofa.com which was put up for sale last month.
LGT European Capital took control of the business last year, but has now engaged KPMG to find a buyer for it.
The business is thought to have been affected by the collapse of House of Fraser where it had a number of concessions.
ScS, said in October it would stop selling its products at House of Fraser stores from January, saying the partnership had ceased to be beneficial since Ashley bought the failed department store chain.
Ashley is reportedly in talks to acquire music retailer HMV which went into administration at the end of last year.
Ashley’s retail footprint has grown by a third in the last year, with his dealmaking taking his retail portfolio to almost 30m square feet (sq ft), rising from just under 22m sq ft at the beginning of 2018, according to new figures from Colliers International/Radius Data Exchange/GOAD.