Canburg, owner of the Smallbone of Devizes and Mark Wilkinson Furniture brands, has dismissed unsubstantiated industry rumours on the current health of the two businesses.

Speculation has mounted recently that the brands - bought by British entrepreneur Leo Caplan in March 2009 - are experiencing difficulties and are looking to close more outlets. These rumours were fuelled by the departure of group sales and marketing director Martin Warbrick in October 2011.

But, in response, Canburg told kbbreview that the company is simply continuing the restructuring that began when it bought the brands.

"Since the acquisition of Smallbone of Devizes and Mark Wilkinson Furniture, Canburg Limited has undertaken a structured reorganisation to bring the companies back into profit whilst maintaining the integrity of the leading two bespoke furniture brands in the UK," s spokesperson said. "Canburg is continuing the re-organisation process to right-size the business to maintain its strong future in these challenging economic times. The review also centres on improving the white glove service for which both brands are renowned."

The companies are wholly owned and funded by Caplan and his investment to date stands at nearly £6 million. The company insists that it has no bank loans, overdrafts or outside investment of any kind and it is Caplan that is driving the changes needed to grow the brands in the future.

"Leo Caplan is taking the business forward in the UK with the launch of several new collections for both companies in early 2012 and this will further cement its position as the number one and number two high-end fitted furniture brands in the UK," the Canburg spokesperson said. "In the US. a contract to supply 135 kitchens for the prestigious One57 Extell development in New York has been secured. Our fastest growing markets are outside of the UK and the company is currently seeking additional investment to spearhead further expansion into markets such as China, Brazil and Russia and its former republics."