// Tile Giant has had 13 of its stores closed with immediate effect after calling in administrators
// Administrators at Interpath Advisory have been appointed
Tile Giant’s new owner has called in administrators and carried out a pre-pack deal after it emerged that the retailer needed a “greater funding requirement” than anticipated.
Following the deal, 13 Tile Giant stores will close and 43 jobs will be lost.
The tiling retailer was acquired last month by former Topps Tiles chief executive Matt Williams’s firm Stiled, but it was forced to appoint Interpath as administrator yesterday after it discovered the firm’s finances were worse than expected.
It found a number of creditors were beginning to take action in relation to unpaid arrears and reducing their credit terms to the company.
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Interpath sold the business and assets of the company to two parties, as part of an interconnected transaction.
Stiled Holdings Limited acquired the trading name, goodwill and the business and assets, including the transfer of employees at 56 stores and head office.
Private equity firm Aurelius has taken on 13 of Tile Giant’s stores as part of the deal to add to its Ceramic Tiles Limited business. Ceramic Tiles already has 89 branches and four distribution centres.
The 13 stores not included as part of either transaction and have been closed with immediate effect with 43 redundancies made. Among the stores which have closed are branches in Shipley, Grimsby and Leeds, Elland Road.
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.
“I am thrilled to have the opportunity to lead Tile Giant back to growth, profitability and unleash the potential of the brand.”
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