28-04-2025
Royal Family-approved decor company snapped up by Dunelm
A Royal Family-approved home decor brand fell deeply into the red before being snapped up by Britain's biggest homeware retailer earlier this month.
Designers Guild, which was recently put up for sale after sinking to a £1.7 million loss, has been bought by Dunelm for an undisclosed sum.
The London-listed retail chain has acquired the struggling brand's IP and design archive, but not the business operations or stores, after what is said to have been a 'highly competitive' sales process. It is not yet known who else entered the bidding war.
Designers Guild was founded by Tricia Guild, an interior and textile designer known for her bold use of colour and pattern. She is a key figure in the UK's interior design scene, and founded her company in 1970.
The business designs, wholesales and retails furnishing fabrics, wallcoverings, upholstery, bed, bath and home accessories in more than 55 countries, including the UK. It supplies fabrics under exclusive license from the Royal Family and includes a series of collections inspired by the interiors of royal residences like Buckingham Palace and Windsor Castle.
The brand, which sells rugs for between £700 and £3,000, also has had collaborations with various fashion labels such as Ralph Lauren, Christian Lacroix and Next, as well as the artists Howard Hodgkin and Kaffe Fassett.
According to the most recent accounts filed on Companies House, sales fell from £42.7 million to £39.8 million in the year to March 31, 2023, which it blamed on ongoing disruption caused by the war in Ukraine, the pandemic and Brexit. About 65.9 per cent of its sales are from overseas, of which 44.8 per cent of total sales are in western Europe.
The business, which has a store on the King's Road in London, made a pre-tax loss of £1.7 million, compared with a loss of £15,000 the year before.
Dunelm, based in Leicestershire, said it had agreed to license the brand and archives back to the business, 'enabling it to continue operating independently'. Under the agreement, Designers Guild will continue to run the store and other business operations.
Guild will remain as founder and creative director and Simon Jeffreys as group chief executive alongside its existing management team.
'This collaboration will help preserve the integrity of our designs while ensuring the ongoing legacy of Designers Guild,' she said.
Dunelm was founded in 1979 by the Adderley family, who sold curtains on a market stall in Leicester, and has grown to become the largest homewares retailer in the UK. The company, which has benefited from the recent collapse of and Debenhams, has 200 shops across the UK.
It has snapped up other homeware brands in recent years, including Dorma, Homefocus and Fogarty.
Nick Wilkinson, chief executive of Dunelm, is retiring from the company and full-time executive life after seven years in the role. He will remain with the company until a successor is appointed.
