A family-owned furniture retailer is setting up a new warehousing operation in Dundee after securing a £220,000 funding package with Clydesdale Bank.
Furniture Mountain’s new storage facility will be established in the former Sella Office Furniture premises at Wester Gourdie Industrial Estate and will allow it to deliver goods south of the border for the first time.
The new facility replaces three existing premises that the company currently rents out at higher cost, and comes with additional office space that will allow the firm to significantly grow its online sales capability.
The firm has had a web presence for a number of years but transport costs from its main storage units in Aberdeen had previously limited the range of its delivery capability and meant it had not been able to fully service customers in England and beyond.
Furniture Mountain – which employs a staff of 13 people – has banked with Clydesdale since its inception and managing director David Chillas said the new funding package would allow the firm to realise its future ambitions.
“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,” Mr Chillas said.
“Owning our own warehouse will reduce our overheads significantly, so it’s a great investment from a 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 the bank was pleased to be backing the future plans of a strong north east firm.
:“Furniture Mountain is a well-run family business which has grown to become a successful independent furniture chain,” Mr Hepburn said.
“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.”
The company have already taken possession of the new warehouse and are currently transferring stock into the unit but it is not expected to be fully operational until March.