£1/4m Funding Deal for Rhapsody
21st Feb 2006
A Knowsley based business has relocated to Merseyside from Blackburn and is now injecting style and finesse into homes across the UK with backing from Merseyside Special Investment Fund (MSIF).
Rhapsody Holdings Design Ltd is owned and run by husband and wife team, Martin and Sue Gernon. The company designs, imports and distributes a range of home furnishings including ready made curtains, bed linen, cushions, throws and towels.
All products are imported from Asia and the Far East but the designs are created in- house with support from a team of external designers.
The £275,000 funding package includes a £175,000 cash injection from MSIF's £20m Mezzanine Fund, support from HSBC and invoice financing facilities from Cattles.
The company was set up four years ago. Now Rhapsody's products are sold to national chains and independent retailers throughout the UK and Ireland.
Managing Director Martin Gernon said: "Consumer interest in home decoration has reached an all time high. This has been fuelled by the wide selection of home makeover shows on TV giving consumers more confidence to try new ideas. We are delighted to have moved to Merseyside. We are seeing a surge in demand for our products and the money from MSIF is will enable us to fund additional product lines and increase our customer base.
The company‚s best-selling range is called 'Bedroom in a Bag'. This is a new concept in selling bed linen in the UK. The 15-piece set comes in three designs and consists of jacquard bed linen, curtains and cushions, providing consumers with a complete bedroom makeover.
Malcolm Jones, Investment Director at MSIF's Mezzanine Fund, who led the deal said: "We are pleased to be supporting this business. Rhapsody is operating in a fast moving industry, and is run by a very experienced and capable management team. Their eye for commercial products and market trends, backed up by strong supply routes means the company deserves to do very well."
Rhapsody currently employs five staff and is aiming to create a further 10 jobs over the next three years.
Andrew O‚Mahony of Brabners Chaffe Street provided legal advice to MSIF and Craig Richardson of PM and M Corporate Finance provided corporate finance advice. Due diligence was conducted by Andy McCall of Langtons
Ends
For further information contact Angela White at Merseyside Special Investment Fund on 0151 236 4040
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