OFT furniture probe embroils PE-backed retailers

The home furniture retailers are thought to have increased prices for limited periods of time to trick consumers into thinking they were buying goods at real bargain prices during extended sale periods.

According to The Guardian, the OFT found the retailers had implemented this tricky pricing method in an organised manner. Around 5% of goods were sold at inflated price levels, with a large number of products never being sold at higher prices.

Sun European acquired bed and mattress retailer Dreams in March last year out of administration in a deal thought to be worth around £35m.

Advent picked up DFS for £500m in April 2010 after seeing off competition from Permira and Cinven.

Neither buyout house wanted to comment on the OFT investigation.

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• Topics
• Consumer
• Advent International
• Sun European Partners