It has been announced this week that furniture store Habitat may be put up for sale. The company’s chief executive Mark Saunders admitted that the retailer has begun a review which may lead to the sale of the company. Habitat has 38 stores across the UK and makes no secret of their intention to pursue opening more in the coming months. The company has quietly established their presence in mainland Europe with 24 Habitat store operating in France with more scattered across Germany and Spain. The company’s accounts have shown that Habitat has made significant losses in the UK and advisors Lazard & Co have been drafted in to assess whether the time has come for the owners to sell Habitat.
Founded in the 1960’s, Habitat has been renowned for introducing high fashion to the high street. The epitome of up-market yet accessible home furniture and home accessories, Habitat has become another victim of the recession. Habitat has suffered because householders have flocked to cheaper stores such as Ikea in an attempt to escape the financial squeeze. Ironically, both Ikea and Habitat are owned by the family of the billionaire founder of the Ikea chain.
Where Ikea has succeeded in difficult economic times, Habitat has floundered, appearing indulgent and unnecessary in an age that is starting to value thrift and austerity. Although no decisions have yet been made about details regarding the potential sale of Habitat, the company have pledged to persevere in a tough economic market for the time being at least.
Monday 19 October 2009
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