Solid mid-market position as a French furniture retailer, with strong brand awareness. Diverse product mix and one-stop-shop concept allowing some degree of differentiation versus peers. Tight cost controls and gross margin improvements will likely stem from purchasing agreement with XXXLutz Marken GmbH (a European Furniture retailer associated with WM Holding GmbH, who holds a 50% stake in Mobilux 2 S.A.S.). Lack of geographic diversification, with a focus on the French market, which we view as highly competitive. Exposure to the furniture retail business' vulnerability to disposable income squeezes and some degree of reliance on the real estate market. Moderately leveraged capital structure, albeit constrained by the inherent volatility of the business, which increases the risk of a rapid deterioration of
