Victoria Plum in talks to merge with rival Bathstore

2415
Bathstore administration

Victoria Plum, the online bathroom retailer, could soon be merged with its rival Bathstore as its owner seeks to offload the struggling business.

According to Sky News, its owner TPG is in talks with Bathstore’s US parent company over a possible merger or sale of Victoria Plum, which it purchased in 2014 for £150 million.

It is understood that if a deal were agreed then Bathstore, which trades from over 150 stores across the UK, would take control of Victoria Plum from TPG.

Talks have reportedly been going on for some time, but have slowed down in recent months and sources indicate that a deal may now not be reached.

For the year to February 28, its most recently published financial figures, Victoria Plum saw turnover rise nine per cent to £63 million.

Operating profits also dramatically improved from a £5.7 million loss to a £200,000 profit.

Following its acquisition in 2014, TPG is thought to have pumped tens of millions of pounds into Victoria Plum.

It comes after a torrid year for investment firm TPG, after its discount retailer Poundworld fell into administration in June, and its casual dining chain Prezzo was forced to launch a CVA amid financial turmoil.

Click here to sign up to Retail Gazette‘s free daily email newsletter