NEWS


Westland updates following Gardman acquisition


Keen to put “inaccurate gossip” to bed, the company has made an announcement about the state of play with Gardman since it bought the business out of administration last month. Despite what


it describes


as a “complex and challenging process”, Westland says “real progress is being made” and that Gardman is developing well


under its ownership. A


strong focus has been put on improving stock availability, as Westland believes retail customers were missing out and unable to maximise the full potential of the Gardman portfolio. It revealed that sales volumes are climbing steadily and are already close to last year’s levels. Westland operations


director Peter Madden, sales director John Mcdowell and Crest managing director Nick Davies are reportedly, “working tirelessly” to bring the Gardman business within the Westland structure and ways of working. Gardman suffered a devastating fire in March, which completely destroyed its main UK warehouse and distribution centre in Daventry. The


company was dogged


by rumours about its closure until it was finally announced administrators were called in on October 16. Gardman’s business and assets were immediately sold to Westland Limited, including the transfer of all employees.


As the acquisition has been the subject of much speculation within the industry, Westland issued a


statement, saying:


“Within just a few short weeks, order volume is returning and is now close to that of last year’s levels, highlighting the industry support for Gardman and the


relevance of offer…” “For the past few years,


retailers and customers have not been able to maximise the Gardman portfolio to its full potential. It is our job now to turn this around... We have already made significant progress in key areas - stock availability is getting stronger by the day and we are in a strong financial position to secure stock when required.”


Read the full statement at www.diyweek.net


www.diyweek.net the product


Grafton Group’s latest trading update recorded a 4.6% uplift for Woodie’s over the past four months, as the parent firm remains on track to deliver full-year expectations. The largest DIY retailer in


Capitol Tile Group bought out of administration


Tile Mountain chairman


Mo Iqbal has bought the distribution operations of Coventry-based


Capitol


Tile Group, which went into liquidation this month, whilst fellow tile retailer BC Ceramics has snapped up six of Capitol’s retail outlets. The two deals have saved a total of 80 jobs. Capitol Tile Supplies Ltd, trading as Capitol Tile Group, was formerly one of the UK’s largest


Norwich, plus 12 retail outlets; with showrooms trading under the Capitol Tile and Supatile names, as well as Capital Design Studio (CDS) in Fulham, London. Its latest filed accounts recorded 123 employees. Mr Iqbal confirmed his


tile distributors across London and the Midlands. However, the business had recently run into “insurmountable financial difficulties” and appointed administrator and business recovery specialist, Begbies Traynor on November 8.


Capitol operates four distribution warehouses in Coventry, Crawley, Edinburgh,


purchase of the wholesale and distribution side of the business from administrators, saving 70 jobs in those sectors. As part of the deal, he has taken on just the main distribution centre in Coventry, plus the trade counter on site. He said of


the acquisition:


“I have known the Capitol Tile Group for many years, having


previously been


of its customers. I, like many others, are saddened that


one it


has fallen into administration. I am, however, delighted that in purchasing its wholesale and distribution divisions, I am able


to secure the roles of 70 of its current staff, some of whom I have personally known since first setting out in the tile industry.” Explaining the reason for taking just one of the distribution warehouses, Mr Iqbal told DIY Week: “One of the reasons the business failed is due to the extra cost of the three distribution centres and the fact that stock was too spread


Sales up at Woodie’s DIY


Ireland, Woodie’s, had a strong first half, with like- for-like sales up 13.4% in constant currency. The 35-strong chain is already up 9.9% for the year so far, with total revenue up 11% in Sterling, and Grafton remains confident the business will end on a high. Grafton’s UK merchanting operations


saw like-for-like (LFL) sales climb 4.2% in constant currency for the four months ended October 31 – a performance that was consistent with Grafton’s expectations but softer than that of the Irish merchanting business,


where trading was up 10%. The UK merchant business, which includes Selco, Buildbase, Plumbase and Leyland SDM was up 2.7% LFL in constant currency for the year to date, with total sales up 8.1% in Sterling, whilst its Irish counterpart, where Grafton has a clear leadership position, was up 7.8% LFL and saw a total revenue growth of 10.2% in Sterling. Like-for-like Group revenue for the four-month trading period – which includes its European operations in Belgium and the Netherlands – increased by 5.5% and total revenue increased over the same period by 10.2%.


HOF to close more stores over rent wrangle


The department store chain is set to close all four of its outlets at Intu shopping centres after failing to agree “reasonable terms” with landlords. House


of Fraser, which


was bought by Sports Direct owner Mike Ashley in August, revealed the business was now in consultation with staff at four stores but has not confirmed how many jobs are at risk. As it stands, House of Fraser faces closing its Lakeside, Metrocentre, Norwich


and


Nottingham stores in the New Year. There have been suggestions that the stores were “underperforming”, however,


House of Fraser has not commented on this and said it was making today’s announcement “with regret”. The company said in a statement: “We had various meetings with the landlord, Intu Properties plc, and adopted a flexible approach. “Despite our best efforts we have been unable to agree


these stores to continue trading. “Sadly,


reasonable we


hope are


terms now


for in


consultation with staff about the fact these stores face closure. We


other institutional


landlords will continue to work with us in order to save stores and jobs.”


out… [We] intend to service all customers from Coventry and carry greater depth of stock.” The business will remain in Coventry, with its management team will be led by Mr Iqbal and Tile Mountain managing director Jeremy Harris.


Meanwhile, BC Ceramics has bought six of Capitol’s 11 remaining retail outlets in a separate deal.


Akzo delivers on promise to shareholders


Akzo Nobel announces


it is to conduct €2 billion capital repayment and share consolidation, returning vast majority of net proceeds from sale of its specialty chemicals,


stating it is


now “a focused paints and coatings company”. Akzo Nobel shareholders voted in favour of all resolutions at the company’s Extraordinary General Meeting (EGM) last week.


The capital repayment and The news comes just months


after it was announced that the department store chain’s flagship Oxford Street store had been saved from closure, after its new owners negotiated revised terms with landlords to remain in occupation in the famous London shopping location.


share consolidation, agreed by a majority of shareholders, follows completion of the sale of Akzo’s specialty chemicals business for £10.1billion to the Carlyle Group and CIC. A special cash dividend of €1billion and share buyback of €2.5billion will be conducted following the capital repayment and share consolidation. This is in addition to €1billion advance proceeds distributed by a special cash dividend paid on December 7, 2017. A total of €6.5billion will have been distributed to shareholders.


Akzo Nobel supervisory


board chairman Nils Andersen said: “Akzo Nobel is now a focused paints and coatings company,


well positioned


deliver significant returns to shareholders and create value for all stakeholders.”


23 NOVEMBER 2018 DIY WEEK 5 to


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