Luxus Home Fragrance: Lighting up the business

The Luxus Home Fragrance adventure kicked off in a humble, makeshift setting – to say the least. James Debnam, founder of Luxus Home Fragrance, a company specialised in the production of luxury handmade candles and diffusers, remembers that not so long ago, he was processing his company’s first orders from his living room: “We were doing orders in our house for a month. We had the sofas up in the corner of the room and a gas burner in the middle of the lounge melting wax. We were pouring candles on the table and using the garage as a warehouse.”

Initially, James was working for another manufacturer of candles and diffusers, where he met his life and work partner Zuzana Sabadka. When this company expanded to deal with larger orders, James and Zuzana saw a market gap and set up their own business, namely Luxus Home Fragrance.

However, as James and Zuzana were advertising their business activity, they soon became overwhelmed with the amount of orders which was using up all their available cash. “We just did not have the money to do it”, explains James. In search of financing solutions, the pair was faced with reluctance from their bank as Luxus Home Fragrance was a new business with no track record. Looking for other solutions, James and Zuzana had a go with Fredericks Foundation, a Responsible Finance Provider, who offered them a loan guaranteed by EIF through the EU Employment and Social Innovation programme.

This EU programme, whose aim is to provide microfinance to vulnerable groups who want to set up or develop their business, supported James and Zuzana to rent proper premises for their company, buy new equipment, but also hire new staff.

With seven employees today, James and Zuzana have come a long way since making candles from their living room. “I know we can make this business successful”, explains James. “I really want to increase the number of staff each year and to continue making my business grow.”

Company: Luxus Home Fragrance (United Kingdom)

Type of business: Candle & diffuser manufacturing

EIF financing: EaSI

Financial intermediary: Fredericks Foundation

For further information about EIF intermediaries in the United Kingdom, please refer to:
http://www.eif.org/what_we_do/where/gb