Tile supplier CTD Tiles has struck a rescue deal with Topps Tiles after falling into administration but has shut 56 stores and cut 268 jobs.
The company, which ran 86 stores across the UK and employed 425 staff, fell into insolvency on Monday after coming under pressure from a downturn in the home improvement sector.
Administrators from Interpath Advisory said competitor Topps had struck a deal to buy CTD’s brands, intellectual property, stock, 30 stores and operation of distribution sites in Leeds and Kings Norton, Birmingham, for around £9 million.
It is understood that 92 workers will transfer to Topps Tiles.
Administrators will also keep on a further 65 people to deal with the transition of the administration process.
But they confirmed that the remaining 56 shops had now shut, with 268 workers being made redundant immediately.
CTD ran sites across the UK with trade and retail showrooms and recorded roughly £75 million in revenues for the past year.
James Lumb, managing director at Interpath Advisory and joint administrator of CTD Tiles, said tough market conditions proved “insurmountable” for the supplier in recent months “as consumer and trade demand failed to recover in line with expectations”.
He added: “The transaction with Topps Group provides continuity for a considerable number of staff and stores as part of a major tiles group.
“Regrettably, the remaining sites have closed, which has resulted in redundancies.
“We are now focused on supporting those staff and have specialist teams on site working with impacted employees to help make representations to the Redundancy Payments Service where relevant.”
Rob Parker, Topps Group chief executive, said: “The CTD brand and assets are an excellent fit with our existing business and the acquisition creates a new and complementary specialist tile business within the Topps Group.
“CTD operates a different model to our existing Topps Tiles retail stores, with separate trade and retail offers within each unit and a number of market-specific sub-brands which are differentiated from our existing offer.”
