Habitat under threat as Hilco seeks sale
24 June 2011 10:43
Around 900 jobs at Habitat are understood to be under threat following moves by owners Hilco to offload the iconic brand.
It is understood that talks are underway between Hilco and Home Retail Group (HRG), with HRG potentially interested in buying the UK rights to the brand along with its three London-based stores.
Should the deal be finalised, Hilco will retain Habitat's European stores while HRG will start to sell Habitat branded goods through its Homebase and Argos stores.
The future for the remaining 30 stores in the Habitat portfolio, however, looks bleak, with administration and job losses in the hundreds appearing the most likely outcome.
Hilco acquired debt-laden Habitat two years' ago from the Ikano Group, the company founded by Ikea's owners the Kamprad family, promising to inject £45 million to revitalise the brand.
The harsh trading conditions within the UK market have hampered the turnaround significantly.
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