New owners for furniture retailer Ilva

Rumfatalagerinn has bought a 90% stake in the business from Icelandic bank Kaupthing and the new owners plan to re-launch the struggling business in the UK.

Ilva, which has four stores in Denmark and Sweden, opened three stores in the UK last year but has struggled with expensive opening costs and disappointing trading.

It originally had plans for 20 stores in ten years but quickly shrunk back its ambitious target and pulled out of a number of talks for new stores including a store at Hammerson’s West Berkshire retail park near Theale in Berkshire.

Icelandic corporation Rumfatalagerinn, which owns The Pier and a stake in Scandinavian home furnishings retailer Jysk, will inject new capital in the business and is reviewing the plans for it in the UK.

Rumfatalagerinn, owned by retail tycoons Jakup Jacobsen and Jakup Napoleon Purkhus, also has the option to acquire the remainder of the business. Ilva recorded £11.5m start-up loss for the year to April 2006 even before its first UK store opened.

Ilva’s existing UK stores are at the former M&S Lifestore locations in Gateshead and Lakeside and one in Manchester.

Kaupthing acquired its 90% stake in Ilva from private equity backers Advent International in March.

Rumfatalagerinn has bought a 90% stake in the business from Icelandic bank Kaupthing and the new owners plan to re-launch the struggling business in the UK.

Ilva, which has four stores in Denmark and Sweden, opened three stores in the UK last year but has struggled with expensive opening costs and disappointing trading.

It originally had plans for 20 stores in ten years but quickly shrunk back its ambitious target and pulled out of a number of talks for new stores including a store at Hammerson’s West Berkshire retail park near Theale in Berkshire.

Icelandic corporation Rumfatalagerinn, which owns The Pier and a stake in Scandinavian home furnishings retailer Jysk, will inject new capital in the business and is reviewing the plans for it in the UK.

Rumfatalagerinn, owned by retail tycoons Jakup Jacobsen and Jakup Napoleon Purkhus, also has the option to acquire the remainder of the business. Ilva recorded £11.5m start-up loss for the year to April 2006 even before its first UK store opened.

Ilva’s existing UK stores are at the former M&S Lifestore locations in Gateshead and Lakeside and one in Manchester.

Kaupthing acquired its 90% stake in Ilva from private equity backers Advent International in March.