Toolstream enters administration as employees informed ‘keep at house’ after 111 jobs axed
Employees at a major British DIY firm have been instructed to “stay at home” as the company has gone into administration. This is expected to result in the loss of over 100 jobs.
Toolstream announced this unfortunate news on December 11, attributing it to challenging trading conditions resulting from the global COVID supply crisis. The company sells to tradespeople and DIY enthusiasts.
According to reports, staff were summoned to a meeting late last week and asked to remain at home until further notice.
Administrators confirmed that a total of 111 redundancies have been made. The directors have appointed administrators who stated that limited stock availability forced the retailer to shut its doors.
Hywel Phillips and Gavin Park of Teneo Financial Advisory have been appointed as joint administrators by the directors of Toolstream and Group Silverline Limited.
(Image: Guido Mieth via Getty Images)
Group Silverline owns Toolstream and the freehold of the property used by the business, reports the Mirror.
Phillips commented: “Our priority is providing support to all those made redundant. We appreciate that this is a very difficult and uncertain time for all involved.”
Toolstream sold over 6,000 branded hand tools, power tools, fixings and workwear to retailers, wholesalers and merchants across the UK and Europe. It worked with brands such as Silverline, Triton and Scruffs, among others.
The company’s profits in its latest accounts up to July 31, 2023, were reported as £57.7 million.
Administrators have stated that the difficult trading conditions have affected profitability and despite attempts to collaborate with stakeholders to secure the necessary funding for solvent trading, it was not achievable.
They also mentioned that a handful of employees have been retained to assist the administrators.
The company’s next accounts, due up to July 31, 2024, are overdue and were expected by July 31, 2025.
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