Sterling Furniture Group fell to a loss of almost £4 million last year ahead of a management overhaul.

The retailer blamed the loss on “legacy decisions and overinvestment in anticipation of growth that did not materialise”, according to its newly-filed accounts.

Bernard Dunn, the former head of Scottish insurance group TL Dallas, came in as chairman as the Tillicoultry-based company marked its 50th anniversary in October. He parted company with CEO John Pattison after just a year in charge. CFO Kenny Barclay also left.

In December former Rangers managing director Stewart Robertson was brought in to replace Mr Pattison, initially on an interim basis and recently confirmed as permanent. Malcolm Walker, a retail industry veteran, joined earlier this year as a group board adviser with responsibility for buying and merchandising.

Mr Pattison was brought in after spending almost four years as commercial director at Sunderland-based sofa and furniture retailer ScS.

He refreshed Sterling’s management team and secured significant new funding in a new and extended arrangement with Royal Bank of Scotland. He was behind plans for several new stores including a 50,000 sq ft unit at Hillington in Glasgow.

The board is now focused on reducing costs, improving and investing in the product range with the continued support of the founding family.

Accounts for the company show a loss of £3,963,283 for the year ended 31 August 2024, following a profit of £43,870 the previous year prior and £4.15m in 2022. Turnover dipped to £50.5m from £83.7m. No dividends were paid.