Snug Shack Ltd which specialised in modular ‘sofa in a box’ home furnishings has been sold in a pre-pack administration deal to ScS Group’s newly created subsidiary Snug Furniture Ltd. The deal was brokered by joint administrators Colin Hardman and Mark Ford of Evelyn Partners.
Snug was founded in 2018 and flourished during the pandemic amongst a younger demographic as its products could be delivered to customers’ doors, easily moved and then unpackaged by customers in the rooms they were to be used in. The business achieved revenues of £30m for FY21. All was going well until the business model was undermined by massive rises in shipping costs, punitive exchange rates and falling demand.
ScS intends to continue trading the brand much as it is and is taking on all of the staff.
Steve Carson, CEO, ScS said: “Snug is an exciting and young business with great potential. It has a strong and recognisable brand, a differentiated product and targets a market that complements our proposition. In that regard, it presents us with an exciting opportunity to further increase market share.”
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