It was only a few weeks ago that high-end furniture retailer Dwell entered administration after a period of sustained financial difficulties.
Along with leaving the future of its employees highly uncertain, the company also enraged consumers by announcing that there was no guarantee existing orders would be honoured – something which could have proved problematic for any buyers keen to take over the brand in future.
However, it has now emerged that one of the original co-founders of the business has stepped back into the picture, bringing with him hope for concerned staff and customers. Along with family and friends, Aamir Ahmad founded Dwell back in 2003 but left the chain last year.
He has now signed a deal agreeing to save a number of the chain’s outlets, saving a total of 150 jobs.
So far, five of the most profitable stores have re-opened for business – three of which are found in London. A further store has re-opened in Manchester, and the successful Lakeside Shopping Centre branch in Essex has also resumed business as usual. Additionally, the online aspect of the business is once more up and running.
Mr Ahmad has promised to do everything he can to ensure all customers awaiting a delivery will receive their items.
He said; “Our priority lies with the customers and suppliers who have been let down by the former management.
“We are working hard to try and resolve the issues, in particular outstanding customer orders.
“Although we are not legally obliged to, we are doing everything we can to find a solution for customers who have lost out – our primary goal is to help customers and suppliers regain their trust in the Dwell brand.”
While it remains early days for the brand’s recovery, it is hoped that the involvement of Mr Ahmad will allow the chain to regain some of the direction that was lost under the previous management.
Industry experts have put much of the blame for the collapse on Dwell’s rapid property expansion, as they believe the prior management team overestimated the demand for big-ticket luxury goods in the previously unstable economic environment.
Mr Ahmad and the administrators from Duff & Phelps are now in discussions with landlords of several Dwell stores to see whether a more financially sound deal can be agreed before re-opening an unspecified number. However, it is likely that Mr Ahmad has learned from the mistakes of his predecessors and will not be seeking a rapid expansion schedule.
Joint administrator John Whitfield says; “We are delighted to have been able to conclude an agreement that results in not only the continuation of the brand, but saves many of the employees’ roles as well as securing the best outcome for suppliers.
“The new management will now be in the position to work with customers to try and identify the best solution for everyone concerned.”
Do you think the re-emergence of a co-founder will turn around the fortunes of Dwell, or has customer trust been damaged irreparably by the brand’s previous failure to, quite literally, deliver the goods?
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