NewsBite

Advertisement

This was published 1 year ago

Fenton & Fenton rescued, Lucy Fenton to stay on

By Jessica Yun

Collapsed homewares retailer Fenton & Fenton has been bought by family-run furniture business Berkowitz Furniture for an undisclosed sum.

The new owner of Fenton & Fenton, which collapsed in early August and owes customers nearly $1.6 million, has committed to fulfil customer orders where possible and honour gift cards “with some conditions”, according to a statement.

Fenton & Fenton’s retail showrooms may be reopened after being rescued.

Fenton & Fenton’s retail showrooms may be reopened after being rescued.Credit: Justin McManus

EY turnaround and restructuring leader Adam Nikitins, who led the liquidation process, said Berkowitz Furniture was selected from a handful of prospective buyers for its willingness to support the brand and its customers.

“The intention is to honour outstanding customer orders, store credits and gift cards,” Nikitins told this masthead, adding that there may be “certain instances where a supplier may not provide supply”.

Fenton & Fenton’s online store and Melbourne showrooms are slated to be reopened later this year.

Loading

Founder Lucy Fenton has been retained to continue as the business’ creative director to maintain brand identity, while Berkowitz Furniture will bring in its management team “for long-term stability”.

In her first comments since the company’s collapse, the sole director said she was extremely grateful for the Berkowitz team and the “faith they have shown” in Fenton & Fenton.

“This has been an extremely challenging time for the business, our customers, staff and suppliers, and I am pleased to have found a solution that enables us to continue Fenton & Fenton into the next chapter,” she said in a statement.

Advertisement

“The team at Fenton & Fenton, along with local designers and artists who have contributed to the Fenton & Fenton brand, have developed such a loyal following over the past 15 years.

“This new partnership gives us the confidence to plan for the future, and we look forward to welcoming our loyal fans back to the brand.”

Fenton & Fenton has been rescued by Melbourne family-run business Berkowitz Furniture.

Fenton & Fenton has been rescued by Melbourne family-run business Berkowitz Furniture.

Berkowitz Furniture is a fifth-generation family business that opened its first store in 1962 in Melbourne’s Collins Street and has 11 showrooms across Victoria, NSW and South Australia.

The acquisition of Fenton & Fenton is part of the company’s strategy to diversify its portfolio.

“We are delighted to be able to continue the Fenton & Fenton story, given how much support this interior design icon has in Melbourne, and across the country,” said Berkowitz Furniture boss Peter Berkowitz.

Loading

“We know what this design institution means to so many people, and we are dedicated to preserving its unique, colourful identity and independence.”

Many customers expressed their frustration to this masthead about “dishonest” trading practices and feeling “duped” after Fenton & Fenton held sales in the weeks before the business officially collapsed.

Creditors, some of whom are owed more than $10,000, include former employees, suppliers and business partners, as well as the ATO, ANZ, NAB, and more.

The Business Briefing newsletter delivers major stories, exclusive coverage and expert opinion. Sign up to get it every weekday morning.

Most Viewed in Business

Loading

Original URL: https://www.watoday.com.au/link/follow-20170101-p5e339