I think you should paint the walls grey. Grey and red are fabulous together. If you need to because the room is small, put a darker grey on the wall where the fireplace is and a softer one everywhere else. Use the cream color of the fireplace in your throw pillows, rug, art etc as a accent color. Seems the room is small so the TV above the fireplace might be a good choice. The right chandelier and sconces will improve lighting. Add some table lamps. Chrome will make the lighting pop. What is the floorplan going to be with the new furniture?

You'll need to deepen the wall color for the contrast you want. One overhead light is not enough for your dark corner. That is what we call "ambient" light - just a way to turn something on so you don't fall over furniture when entering in the dark. You'll need both accent and task lighting - lamps. Your current furniture is very large and is eating up this small space. Before you replace it with an equally large "suite" consider mixing it up with a pair of chairs and an apartment sized sofa. Here are some inspirations for color and a pair of chairs.

Actually I managed to find a stockist of chalk paint which is fantastic as it needs no sanding, no primer just straight on to the marble, and made a start on it tonight, I didn't think to take a picture before hand, but I will post a pic after :-)

If you buy some units that have an open frame and they are not too wide or deep, they won't box in the fireplace.