NEWS | Round-up Bathstore in administration
BRITAIN’S BIGGEST bathroom retailer Bathstore has entered into administration following several months of ‘diffi cult trading’. BDO has been appointed administrators while the company tries to fi nd a buyer. Bathstore will continue trading “with a view to exploring a sale as
Installers owed in “excess of £1 million” by Bathstore
BATHSTORE HAS pulled the plug on all installations following its collapse into administration leaving fi tters chasing an initial estimate of £1 million for unpaid work and this number is expected to rise as more details emerge. The British Institute of KBB Installation (BiKBBI) said it has received 100 updates from its members, which it estimates represent around a quarter of those affected. Those 100 are collectively owed in excess of £1 million for completed installation work. “We expect this number to
a going concern”, BDO said.
The company said that it is able to satisfy outstanding customer orders but stopped all installation services. Bathstore employs 531 staff over its 135 branches and head offi ce.
rise dramatically as our members continue to update us,” said BiKBBI. The highest individual creditor is owed over £90,000 with the majority owed between £2,500 and £10,000. In an offi cial letter from admin- istrators BDO contractors were told: “Unfortunately, as the company is now in administration, it is no longer possible for the company to continue to provide installation services to customers. This means that unfortunately your services with the company are terminated with immediate effect.
“Should you be owed monies by the company in respect of installation work you have completed prior to administration, this will be considered as an unsecured claim against the company.” There are an estimated 200 to 300 live fi ts in progress.
The statement, sent in an e-mail to Bathstore installers, said that if they
Ryan Grant, BDO business restructuring
partner, said: “Despite signifi cant investment into the business over the past fi ve years, Bathstore has struggled to overcome the well-documented challenges facing the UK retail sector. The appointment was made after several months of diffi cult trading, and the failure of ongoing talks to fi nd a buyer for the business. Bathstore is continuing to trade in administration, whilst the administrators seek a buyer.
“Subject to available stock, Bathstore is expecting to be able to satisfy the majority of outstanding customer orders, with the support of key stakeholders. However, all installation services have ceased with immediate effect. Customers will be contacted directly but can also fi nd information on the company’s website:
www.bathstore.com.” Customers will still be able to receive their
orders as DHL has agreed a deal with Bathstore’s administrators.
A spokesman for DHL Supply Chain said: “Following discussions with the administrators we have agreed to continue providing delivery services to Bathstore while efforts continue to fi nd a buyer.”
had not received payment for previous work, then they would be considered for an “unsecured claim against the company”.
BiKBBI CEO Damian
Walters said: “Once again it’s the little guy that’s hit the most. Honest, hard- working people who are the backbone of our economy are once again the victim of a scenario which is clearly way beyond their control. I give my personal assurances to each and every one of them and their families that we’ll do everything in our power to ensure their voice is heard. “We have requested meetings with the appointed administrators at BDO and will be meeting ministers to discuss the available support to our members and their customers. I have spoken to our own patron Stephen Metcalfe MP, and we are working
on a strategy to seek government support on this matter. This will go right to the top, and I will not rest until notice is taken and action is had.” The Rainy Day Trust, which is a charity set up specifi cally for those in the home improvements sector who have fallen on hard times, has said that the charity is there to help those affected. It said: “If you or someone you know is affected by this, get them to call 020 3192 0486 and ask for an application pack.”
‘Protect installers or lose them forever,’ warns BiKBBI
THE CHIEF executive of the British Institute of KBB Installation has spoken out in the wake of Bathstore’s administration, warning that if the KBB industry don’t protect installers then we risk losing them to other ‘less risky’ industries. In a blog on the BiKBBI’s website, CEO Damian
Walters (pictured) said the institute was “shouting about the installers’ losses out loud” but warned of the wider implications for the retail market, as retailers needed installers “to fulfi l their ambitions”. The stark warning comes after Bathstore pulled the plug on all installations following its collapse into administration, leaving fi tters chasing an initial estimate of £1 million for unpaid work – a number that is expected to rise as more details emerge. “Once again it’s the little guy that’s hit the most. Honest, hard-working people who are the backbone of our economy are once again the victim of a scenario which is clearly way beyond
4
their control.” In his latest blog, Walters warned that, with the current skills gap in the UK, “we are already running dangerously low on available talent”. Walters continued: “The apprenticeship initiative
we’re supporting will not bear fruit for many years and with our relationship with the EU far from clear, we simply can’t afford to let these experienced installers slip into early retirement or other industries.”
He added that by protecting installers, they would also be protecting retailers, “not just today, but for tomorrow too” and that the BiKBBI’s role has always been to support all the various stakeholders in the world of KBB installation. Walters said that the BiKBBI was “shouting loud” in an attempt to make sure that the industry does not lose “great people”.
The BiKBBI wants its members, he said, to have a seat at the table and we want the Government
to step up their support of them in the same way they would support big businesses in times of crisis.
“The Government have often referred
to the SME as the ‘backbone of the UK economy’, so for me it’s time they put their money where their mouth is,” added the BiKBBI CEO. Walters said there was a need to “collectively
fi nd a solution to prevent future failures affecting our precious installer commodity and we need to work that out quickly”.
In the meantime, the BiKBBI added that it was also “supporting Bathstore, potential buyers and the administrators – as well as those customers affected”.
kbbreview · August 2019
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