Bean bag maker Bazaar Group is ramping up its European expansion plans with the launch of a base in Germany, on the back of a significant seven-figure finance deal.
The Northumberland company has secured the debt funding package from HSBC, which will pave the way for European expansion and support its ambitious growth strategy.
The deal comes just over a year after the company secured investment from Leeds based Comhar Capital, as part of a £10m deal to support the first phase of its international growth plans.
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The soft furniture firm was launched 17 years ago after the founders Mark and Jayne Dolder spotted a gap in the market to reinvent the humble bean bag and create contemporary soft furniture.
The firm continues to operate from Cramlington, steadily growing sales of its bean bags, thanks to being a top performer on large ecommerce platforms including Amazon, eBay and Wayfair. Seven years ago it moved into its third manufacturing and commercial premises, 17 times the size of the original at 42,000 sq ft.
And since CEO Mark Dolder secured the majority share investment from Comhar Capital in January last year, the partnership has put a plan into action which includes an aggressive European expansion project.
Now the company has signed a long lease on a manufacturing and distribution hub in Hamburg, Germany, which will be focused on meeting the rising demand from rising numbers of customers in Europe.
The 35,000 sq ft unit will serve as a fulfilment operation, allowing the company to access a market of 165 million people within a 48-hour delivery window.
Mr Dolder said: “This is another exciting phase for the Bazaar Group. Our initial partnership with Comhar Capital fuelled our ambitions and gave us confidence to grow the business. The European expansion project, with the added support from HSBC, is a significant step in consolidating our position in the European market.”
Commenting on the company’s refinancing package, Mark Short, chief finance officer said: “Having recently joined the business, I am really pleased to have secured this support from HSBC for our European expansion plan. I am very much looking forward to working closely with Comhar and the team at HSBC as we deliver on the business’s commercial goals.”
Craig Wilkinson, managing director of Comhar Capital, said: “Since investing in the business, we have been working closely with Mark and the Bazaar Group team to develop an accelerated growth plan. Our new partner, HSBC, adds a new dimension to the business and supports Bazaar’s European plans, a key growth pillar for the business.”
