DIY giant plunges into administration with jobs axed

DIY business Toolstream has collapsed into administration, with more than 100 staff losing their jobs just before Christmas. 

The Yeovil-based importer and distributer of DIY tools appointed administrators on 11 December.  

Toolstream was the sole distributer of more than 6,000 hand tools, power tools, fixings and workwear to retailers, wholesalers and merchants across Britain and Europe. 

The board of Toolstream and Group Silverline Limited appointed Hywel Phillips and Gavin Park of Teneo Financial Advisory as joint administrators. 

Toolstream, founded in 2009, is a wholly-owned subsidiary of Silverline, which owns the freehold property from which it operates. 

Hywel Phillips, joint administrator, said: ‘Regrettably, the closure of the companies has led to 111 redundancies and our priority is providing support to all those made redundant.

‘We appreciate that this is a very difficult and uncertain time for all involved’. 

It is understood that staff were called to a meeting late last week and asked to remain at home until further notice. 

The affairs, business and property of both companies are now under the control of the administrators.  

Administrators told Builders’ Merchants News the companies experienced challenging trading conditions in the aftermath of the Covid-19 global supply crisis, resulting in limited stock availability. 

This had a knock-on effect on profitability and, despite efforts to work with stakeholders to secure the funding required to continue trading on a solvent basis, no agreement was reached.

Administrators said they had taken the decision to pause trading and were inviting interest from any parties who may wish to acquire the assets of the companies. 

A small number of staff have been retained to assist the administrators with the ongoing operations.

The latest Companies House accounts for 31 July 2024 were overdue. Profits in its latest accounts made up to 21 July 2023 were reported as £57.7million.

Turbulent times for retailers 

Retailers have been battling higher employer national insurance and wage costs as a result of Rachel Reeves’ Budget announcements last year. 

This year, households and businesses are now coming to terms with the £26billion of tax hikes Reeves announced in November, including raids on income, savings and pensions. 

In September, the future of fashion accessory chain Claire’s was secured in Britain with the sale of more than half of its stores, but doubts remain over the fate of its remaining shops and jobs.

Modella Capital, which bought the WH Smith High Street stores, agreed to purchase ‘substantially most’ of Claire’s UK, joint administrators confirmed. The new deal saved around 1,000 jobs and 156 stores, but 145 other stores were not included in the deal.

In August, Poundland avoided collapsing into administration after its turnaround plan was approved days before the chain was due to run out of money. 

Back in April, Hobbycraft announced plans to shut at least nine stores in a move affecting up to 126 jobs as part of a restructure. Modella Capital bought the arts and crafts seller from the equity firm Bridgepoint in 2024.