Leo Caplan, owner of the Canburg Group of kitchen companies that includes Smallbone and Mark Wilkinson has defended his decision to close Smallbone stores in Scotland and Cheshire and put Alternative Plans into administration.

Speaking exclusively to kbbreview, he admitted the Alternative Plans venture had cost him just under £1.9m over the last two years. "That would have broken most companies," he said. "Things got a bit out of hand there because I was focusing on the main event. But I'm able to take it on the chin and move on. I'm going to concentrate on what we manufacture, I'm not going to concentrate on a sideshow.

"Alternative Plans was aimed at the architect market but that's been a tough one over the last few years. It was never key to what we do."

On the closure of the Smallbone stores, Caplan explained that trading conditions in the north remain tough and that it was therefore "the right business decision".

"If you've got a part of the business that's costing the rest of the business money and isn't working, what's ruthless about closing it?" he said. "I'd rather be ruthless than stupid. The manager of the Edinburgh showroom relocated to head up our Beaconsfield showroom. He had three or four days in Scotland where nobody would come in the showroom, do you think he wants to work there?"

Caplan confirmed that business in the South East is buoyant and that Smallbone is currently undergoing a £500,000 refurbishment of its Knightsbridge store. Updated ranges are planned for later this year along with new acquisitions and further growth into emerging markets.

"My aim is to create a global luxury home brand," he explained. "About 90% of what I consider the turnaround is complete. The global group may well include a glass manufacturer, it may well include standalone furniture, that's where I might take Mark Wilkinson. It may include wallpaper and paint. Don't compare us with other kitchen brands, we are very different and that will become clear when we make further acquisitions."

See the March issue of kbbreview for the full interview