Contract furniture manufacturer David Bailey Furniture Systems has confirmed the completion of a management buyout.
Managing director Trevor Gillman, who first joined the business back in 1990, secured £110,000 loan, alongside a £300,000 invoice discounting facility – freeing up working capital, from Lloyds Bank Commercial Banking to complete the buyout.
Trevor now plans to develop partnerships to expand the business, which was founded in 1982 supplying kitchens to the local Kent market.
Commenting on the MBO, Trevor said: “Lloyds Bank has made my idea to buyout the management of the company a reality, and I couldn’t be happier with the result.
“The team there made it clear from the outset that they believed in me and my plans for the future of the business, and they gave me fantastic advice.
“Now I have more control to pursue my plans for the business and expand the range of products we deliver.”
Nicky Taylor, a regional manager at Lloyds Bank Commercial Finance who struck the invoice discounting deal, said: “As well as the initial funding for the buyout, it was necessary to free up some working capital within the company.
“That’s why the bulk of the funding came from the invoice discounting facility – it’s an easy way to get immediate access to cash that is being held in sales invoices.”
Paul Green, senior relationship manager at Lloyds Bank Commercial Banking, added: “Supporting this management buyout gives him the autonomy to develop new partnerships and services and we were more than happy to help him transform his role in the business.”