Joyce Corporation, the company that owns the Bedshed Franchise, has invested a hefty sum in KWB Group’s retail brands Kitchen Connection and Wallspan Kitchens and Wardrobes.

The company recently signed a heads of agreement, which is subject to due diligence, with the KWB Group outlining that it would take a minimum 51 per cent stake in the company “through the conversion of secured convertible notes over a six-month period.”

According to The West Australian, KWB Group has consolidated forecast sales of $26 million this financial year, whereas last financial year Joyce reported a net profit of $3 million.

Anthony Mankarios, executive director, Joyce Corporation said the company’s decision to invest in the group was based on a number of things, including its potential to operate under the franchise model.

“We’ve been looking for a retail business that’s got the ability to franchise because that’s our background,” he said.

“Our expertise is in franchising and given our background in retailing they thought we were a very good fit. We think it’s a very good opportunity.”

He also said that through its experience with Bedshed, Joyce could provide KWB with expertise and knowledge of the best retail centres for kitchen showrooms.

“The business has the potential to grow nationally very quickly and become part of our stable of businesses that we inevitably own,” he explains.