Two deals have saved around 300 jobs at nationwide retailer Tile Giant after its new owners called in administrators.
The £46m turnover Leeds-based firm had been acquired last month by Stiled - a company belonging to former Topps Tiles chief executive Matt Williams - before a review of the business uncovered greater funding needs than anticipated as creditors began to take action in relation to unpaid arrears and reduced their credit terms. Administrators at Interpath Advisory were called in this week and Tile Giant has subsequently been sold to Stiled Holdings Ltd, also led by Matt Williams, and Newcastle-based CTD Tiles Limited.
Two simultaneous, interconnected deals saw Stiled Holdings Limited take control of the trading name, goodwill and the business and assets, including 56 stores and Tile Giant's head office, along with 233 staff, while CTD Tiles acquired 13 stores along with 48 staff.
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Of Tile Giant's 80 nationwide stores, 13 were not included in the deals and have been closed with the loss of 43 jobs. The stores to close include sites in Sunderland, Southport, Hillington, Northampton, Leicester, Shipley, Evesham, Farnham, Braintree, Preston, Stirling, Leeds and Grimsby.
Accounts for Tile Giant to the end of December 2021 show the business returned to profit following a £4m operating loss in 2020. The firm, which had been owned by investment outfit Coverings Ltd, talked of significant disruption throughout 2021 due to Covid.
Neil Morley, director at Interpath Advisory and joint administrator, 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.”
Matt Williams, CEO of Stiled Holdings Ltd, 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. I am thrilled to have the opportunity to lead Tile Giant back to growth, profitability and unleash the potential of the brand."
Katie Clapham, CTD’s HR & marketing director, said: "We want all of our CTD colleagues, to feel part of our growth story and provide them the possibility to actively engage in delivering success. We are looking forward to welcoming our new team members."
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