ONLINE retailer Modern Rugs has undergone a £3.2m management buy-in backed by Enterprise Ventures and PHD Equity Partners.

The deal gives operational control of the Newton Aycliffe company to Martin Tragen, former group finance director of retailer Timpson. It also allows the 33-year-old founder Ben Dale to release capital from the business although he will continue to hold an equity stake and will remain with the business in the full-time role of technical and marketing director.

Mr Dale set up Modern Rugs in 2004 as a marketing graduate using contacts introduced to him by his parents Peter and Sue who ran a carpet business in Bishop Auckland. The company, which is now based in a 5,000 sq ft facility at Aycliffe Business Park, offers an extensive selection in over 20,000 different design and size combinations with prices ranging from below £50 to more than £1,000.

The company, which also operates the Sisal Rugs website, sells more than 25,000 rugs per year to domestic and trade clients as well as the interior design industry.

Wayne Thomas, who led the deal on behalf of Enterprise Ventures, said: “Ben has done a remarkable job of building a business which he started in his bedroom into the UK’s leading dedicated internet rug retailer.

"Martin’s appointment will bring additional structure that will be required for further growth, which will in turn allow Ben to focus on the digital and creative side.”