Cargo fascia to disappear from high street to make way for Bensons

In a statement Steinhoff told Retail Week “a number” of its 42 stores will be rebranded to the fascia of sister retailer Bensons for Beds and the Cargo brand “will be withdrawn from the high street” during the first quarter of 2016.

A spokeswoman could not confirm how many stores may close as a result of the move.

The Cargo brand will continue to trade online. The retailer opened its first store in London in 1876 under the name JW Carpenter ltd.

The statement said: “Over the last few years Bensons for Beds has delivered consistent growth, making it now the UK’s leading specialist bed retailer.

“The company has decided to accelerate this growth by utilising some of the group’s retail premises in the Southeast.

“As such, a number of Cargo stores will be rebranded to the Bensons fascia in order to give it additional presence in the Southeast and optimise the business’s return from its store portfolio.”

Steinhoff takeover

Steinhoff took control of Cargo and its sister retailers from previous owner Homestyle in late 2006 when it bought out smaller investors, having initially taken a 60% stake in the business for £100m the year before.

South African billionaire Christo Wiese is part owner of Steinhoff International.

The decision to close Cargo’s high street presence came as Steinhoff UK recording a profit surge for the year ending June 28, 2014.

Pre-tax profits at Steinhoff UK increased 42% to £20.8m for the year ending June 28 as revenues increased 5% to £470m.

The furniture group said it maintained “good growth in revenue” despite reducing store numbers during the year.