A Scottish family-owned furniture retail chain has secured vital new storage space that will increase its delivery capacity and pave the way for growth in online sales, thanks to Clydesdale Bank.
Furniture Mountain – which formerly traded as Pine Warehouse – has obtained a funding package worth more than £220,000 from Clydesdale Bank. The deal was delivered by Tim Laundon, business development manager at the Bank’s Business and Private Banking Centre in Aberdeen.
The loan will enable the ambitious business, which operates stores in Aberdeen, Dundee and Lanarkshire, to open a new wholly-owned warehouse facility in place of the three rented facilities it currently maintains. As well as helping the firm to reduce overheads, the new warehouse’s location in Dundee will allow the business to deliver to a wider geographical area. The warehouse also contains office space which the company plans to dedicate in future to growing its online sales division.
The business, which has been a Clydesdale Bank customer since its first day of trading, employs 13 people. It does not expect staff numbers to change as a result of acquiring the new warehouse.
Founded with one store in Aberdeen 21 years ago, Furniture Mountain sells a range of bedroom, living room and dining room collections and upholstery. In 2008, the business opened a second shop in Dundee, followed by a further site in Uddingston, just outside Glasgow, last year.
While the company has been trading online for several years, fuel costs have limited its ability to deliver orders to customers south of the Border from its former main storage units in Aberdeen.
David Chillas, Furniture Mountain’s managing director, said: “It’s a testament to Clydesdale Bank that after 21 years as our banking partner, they continue to view our business through fresh eyes and support our growth aspirations.
“Owning our own warehouse will reduce our overheads significantly, so it’s a great investment from cost point-of-view alone. But just as important is the increase in delivery reach it will permit.
“We also hope to expand our online trading as we will now have proper office space to grow this side of the business. Again, our new Dundee location will also be important because our former storage in Aberdeen was too distant to convert the interest we received from potential customers in England into sales.”
Stephen Hepburn, Head of Clydesdale Bank’s Business and Private Banking Centre in Aberdeen, said: “Furniture Mountain is a well-run family business which has grown to become a successful independent furniture chain.
“Economic conditions have been difficult for retailers in recent years, but Furniture Mountain has responded to the challenge by continuing to offer quality products at an affordable price point."
“As we begin to see signs of economic recovery, Clydesdale Bank remains focused on investing in the growth ambitions of the north-east’s business community.”