Ex-Somerfield Chief To Lead Sofa Chain Float

The former chief executive of Somerfield is being drafted in to spearhead a £70m flotation of ScS Upholstery, the furniture retailer.

Sky News understands that Alan Smith, who led Somerfield for two years in the early part of the last decade, has been appointed as ScS's chairman ahead of an announcement about a stock market listing later this month.

The initial public offering (IPO), which is likely to be announced in the next fortnight, will cap a remarkable comeback to the public markets, which collapsed into administration in 2008.

It was subsequently snapped up for a modest sum by Sun European Partners, which successfully listed Bonmarche last year.

The retailer, which operates nearly 100 stores across the UK, is expected to raise tens of millions of pounds as part of the listing, which is being led by Investec, the investment bank.

Sources said the decision to proceed would depend upon market confidence at the time but said that 'pilot-fishing', which involves informal discussions with prospective investors, had gone very well.

Under Sun’s ownership, it has increased its share of the UK upholstered furniture market from 5% in 2009 to 7.9% in 2013.

ScS is expected to list on the main London market, rather than the junior AIM bourse, despite its comparatively small size, they added.

A window for companies to float ahead of the General Election is expected to be tapped by dozens of companies, with Trainline, the rail bookings group, first out of the blocks earlier this week.

ScS is likely to be among several retailers which pursue listings this year despite the relatively lacklustre performance of some of those which floated in 2014.

Its larger rival, DFS, is expected to be among them in the coming months.

Mr Smith's appointment as ScS's chairman follows a long career in the retail sector, including as chairman and chief executive of Robert Dyas, the hardware retailer.

He was also a member of the board which brought Flybe, the European airline, to the public markets.

In addition to its own stores, ScS has operated House of Fraser's furniture concessions since August last year, comprising 30 shops which have helped the company to broaden the demographic profile of its customers.

Sources said that ScS's top executives were expected to acquire additional shares in the flotation, rather than using it as an opportunity to sell shares.

An ScS spokesman declined to comment.