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Floors-2-Go seeks more investment to carpet its growth

Simon Evans
Sunday 25 October 2009 00:00 BST
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Floors-2-Go, the resurrected flooring retailer saved from extinction last year following a pre-pack administration, is close to agreeing an injection of growth capital from new backers.

The Birmingham-based group, which was saved by flooring entrepreneurs Robert and Richard Hodges in August 2008, is conducting a beauty parade of venture capital investors. It's thought the company is looking for as much as £5m in growth capital to fund an expansion of the group, which was the subject of a £52m management buyout by Jon Moulton's Alchemy Partners in 2006.

Floors-2-Go's management is also thought to be looking for further commitments from interested parties to invest should its trading continue to prosper. A source close to the process said: "Floors-2-Go's numbers look pretty good. They are benefiting from people improving their homes rather than moving. It's a good business."

The Hodges duo bought 80 out of the original 132 Floors-2-Go stores that were put up for sale after the company's collapse into administration last year. The brothers also run FloorMyHome, which has seven stores across the UK.

A Floors-2-Go spokesman was unavailable for comment.

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