Bathstore facing potential collapse

Around 700 jobs could be at risk across 168 stores

20 Jun, 19

Retail chain Bathstore could be facing potential collapse and has lined up advisory firm BDO, according to a report in The Guardian.

Bathstore faces collapse

 

Bathstore has declined to comment at this time.

Based in Welwyn Garden City, the firm has 168 stores nationwide and employs around 700 people.

According to its annual report and financial statements for the year ended July 2017, against sales of £144million, it delivered an EBITDA loss of £4.1million, before £18million of exceptional costs. The total income for the year was a loss of £29.3million.

Bathstore reported price pressure caused by the decline of sterling following the Brexit vote and a marked reduction in consumer confidence led to a decline in sales for the company.

It reported: “The pressures experienced during the financial year continued beyond July 2017 and well into the current financial year, which has been particularly challenging throughout.”

On July 10, 2018, the company received a £15million loan from its ultimate shareholder and extended the maturity of previous loans to July 31, 2019.

Founded in 1990 by Patrick Riley and Nico De Beer, the first store was opened in Croydon and having established several outlets was sold to Wolseley in 2003.

After a decade of expansion, Bathstore was acquired by private equity firm Endless LLP for £15million in 2012.

A couple of years later Bathstore was sold as part of a management buyout when it was acquired by American billionaire Warren Stephens.

The company instated Ian Herritt as CEO on May 2018 succeeding Gary Favell, who spent six years at the helm.

It follows the demise of rival Better Bathrooms, which collapsed into administration with the loss of more than 300 jobs.

And last year DIY chain Homebase underwent a Company Voluntary Agreement, which agreed 42 stores closures.