Modern Rugs, a county Durham, UK-based dedicated online rug retailer, received £3.2m in a management buy-in.
The transaction, which was funded by Enterprise Ventures, investing from the Coalfields Growth Fund, and PHD Equity Partners, along with the incoming management team, gave operational control of the company to Martin Tragen, former group finance director of retailer Timpson. Mike Seery, the former head of corporate recovery at KPMG in the North West, is investing alongside Martin Tragen and will take on a Non-Executive Director role.
It also allows the 33-year-old founder Ben Dale to release capital from the business although he will continue to hold an equity stake and will remain in the full-time role of Technical and Marketing Director.
Set up in 2004, Modern Rugs is now based in a 5,000 sq ft facility at Aycliffe Business Park. It offers an extensive selection in over 20,000 different design and size combinations catering for all tastes and markets and with prices ranging from below £50 to over £1,000. The company sells over 25,000 rugs per year to a customer base consisting of domestic and trade clients and the interior design industry.