Tile Giant’s new owner has named administrators and passed out a pre-pack deal after it appeared that the retailer required a “greater funding requirement” than expected.
43 jobs will be lost at 13 locations in the UK as stores close.
The tiling retailer was acquired last month by former Topps Tiles CEO Matt Williams’ firm Stiled, but it was forced to appoint Interpath as administrator yesterday after it was discovered the firm’s finances were worse than expected.
The accounts showed a number of creditors were beginning to take action in relation to unpaid arrears and were reducing their credit terms with the company.
In an interconnected transaction, Interpath sold the company’s business and assets to two parties.
Stiled Holdings Limited purchased the trading name, goodwill, business, and assets, as well as the transfer of employees from the 56 stores and head office.
Aurelius, a private equity firm, has acquired 13 of Tile Giant’s stores as part of a deal to expand its Ceramic Tiles Limited business.
Ceramic Tiles currently has 89 locations and four distribution centres.
The 13 stores that were not included in either transaction have been closed with immediate effect, and 43 redundancies have been made.
Branches in Shipley, Grimsby, and Leeds’ Elland Road are among those that have closed.
Interpath Advisory director Neil Morley said: “While retailers specialising in DIY and home improvement enjoyed a period of growth during the pandemic, the squeeze on disposable income caused by the current cost-of-living crisis is now starting to place significant pressure on cashflow.”
“We’re therefore pleased to have been able to secure these two transactions which will enable the majority of the company’s stores to continue to trade, and importantly, safeguards a significant number of jobs.”
Williams said: “Today is an important day for all stakeholders at Tile Giant, and particularly for its customers.
“Our focus as the new owner will be to put the customer at the centre of everything we do; that starts with ensuring that all existing orders are honoured and fulfilled in a timely and convenient way.
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“I am thrilled to have the opportunity to lead Tile Giant back to growth, profitability and unleash the potential of the brand.”
Source: Retail Gazette