Glasgow-based online interiors firm Houseology bought out of administration

Houseology.com, the Scottish interior design business with a host of high-profile backers such as former Tesco boss Sir Terry Leahy, has been rescued after falling into administration last month.

Houseology had raised more than 6 million in investment since it started in 2010. Company website pictured.

Luxury furniture and homeware brand Olivia’s has completed a deal to buy the Glasgow-based brand for an undisclosed amount in a blind auction.

Houseology Design Group had been hunting for a buyer for its retail arm after appointing administrators, with 23 employees made redundant. The group comprised business-to-consumer brand Houseology.com and Bureau, a furniture consultancy aimed at businesses - which was unaffected by the appointment and would continue to trade as normal.

Olivia’s is part of The Moot Group, which is led by founder and serial tech entrepreneur Nick Moutter, and has acquired all of Houseology.com’s intellectual property and assets, including suppliers and stock.

Olivia’s said it plans to work with the former chief executive of Houseology to continue to run it as a standalone brand under The Moot Group umbrella. The 23 staff made redundant will not be rehired, with the brand now operating from Staffordshire, and The Moot Group unable to offer relocation packages to staff.

It said the sale “has the full support of the outgoing executive team”, adding: “While Olivia’s is not taking on any of the brands’ historical liabilities, it is happy to help any Houseology customers that have been affected by the recent news and will try to work with historical creditors.”

“However, poor marketing decisions and returns along with a dysfunctional logistics process caused the brand to fall into decline. Once generating annual revenues of circa £10m, [Houseology.com] had slowly declined over the last 12 months, resulting in poor Q4 sales in 2019, forcing the board to file for administration.”

Moutter said: “When I first started Olivia’s, Houseology was one of the brands we aspired to be as big as some day. Being able to help save it from collapse after just two years of trading is a great feeling, and a direct result of the expertise and innovation in marketing and technology that we have at The Moot Group.

“I’m excited to expand The Moot Group’s current luxury home offering and breathe new life into a brand that has served so many loyal customers over the last 10 years. We’re working hard to ensure a smooth transition for Houseology customers and suppliers, and deliver our mission of being the place online to get fashion for your home.”