Neil Morley and Howard Smith from Interpath Advisory were appointed joint administrators to TG Realisations 2023 Limited (‘the Company’), trading as Tile Giant, on 13 February 2023.
Headquartered in Leeds and operating from more than 80 stores across the UK, Tile Giant is a leading retailer and trade supplier of ceramic tiles, tools, accessories and underfloor heating products.
Like many other companies in the retail and home improvement sector, the Company had experienced significant trading difficulties over the course of 2022.
The Company was recently acquired in January 2023, following which the new management team undertook a review of the business and as part of this process determined that there was a greater funding requirement than had been initially anticipated. In addition, the level of creditor pressure experienced by the Company was increasing, with a number of creditors beginning to take action in relation to unpaid arrears and reducing their credit terms to the Company.
After reviewing their options, including running an accelerated sales process, the directors took the difficult decision to file for the appointment of administrators.
Immediately following their appointment, the joint administrators sold the business and assets of the Company to two parties, as part of an interconnected transaction:
- Stiled Holdings Limited: The sale of the trading name, goodwill and the business and assets, including the transfer of employees at 56 stores and head office, resulting in continued employment for 255 members of staff.
- CTD Tiles Limited: The sale of the business and assets, including the transfer of employees at 13 stores, resulting in continued employment for 48 members of staff.
Under both of these sale agreements, which were interconnected and completed simultaneously, a total of 303 employees were transferred to the purchasers.
Unfortunately, 13 stores are not included as part of either transaction and have been closed with immediate effect. It is therefore with regret that the joint administrators have made 43 redundancies. The joint administrators will be providing support to those impacted as a matter of priority.
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, welcomed the new colleagues to CTD. She 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.”
The transaction will expand CTD’s nationwide network of branches and bolster its commitment to being one of the UK’s leading omni-channel specialist tile distributors.