Topps Tiles acquires CTD Tiles out of administration
Topps Tiles has acquired the CTD Tiles’ brand and certain assets for £9 million after the company fell into administration.
The transaction has included 30 stores, the operation of distribution hubs in Leeds and Kings Norton under a transitional services agreement, and all related intellectual property and stock.
James Lumb and Will Wright of Interpath Advisory were appointed as joint administrators on 19 August and immediately secured the sale.
The administrators said CTD had experienced problems with cashflow in recent months which prompted the directors to run an accelerated M&A process to secure fresh investment.
Prior to entering administration, CTD supplied tiles to the retail, trade and commercial markets through the CTD Tiles, CTD Trade and CTD Architectural Tiles brands and also operated 86 stores. The company had an annual revenue of around £75 million.
The sale will also include 92 staff transferring to Topps Tiles and the 30 stores where they work will continue to trade under the CTD Tiles brand.
The administrators will retain 65 staff to assist with the administration process. However, 268 staff have been made redundant and the remaining 56 branches have closed.
James Lumb, managing director at Interpath Advisory, said: “CTD Tiles is a major player in the industry, but market conditions proved insurmountable as consumer and trade demand failed to recover in line with expectations.
“The transaction with Topps Group provides continuity for a considerable number of staff and stores as part of a major tiles group. We are working with the team to ensure a smooth transition for customers and suppliers.”
In addition to expanding its store portfolio, Topps said the acquisition will provide it with the opportunity to make a meaningful entry into the housebuilder segment and expand its existing share of the A&D segment.
The stores being acquired by Topps Group had total sales of around £20 million in the year to June 2024.
Rob Parker, Topps Group chief executive, said: “CTD operates a different model to our existing Topps Tiles retail stores, with separate trade and retail offers within each unit and a number of market-specific sub-brands which are differentiated from our existing offer.
“The acquisition of 30 high quality stores and selected supporting infrastructure, together with the intellectual property and customer data required to service CTD’s existing commercial customers in the housebuilding and A&D markets, provide us with an opportunity to make material progress towards our Mission 365 sales goal.
“We are excited about the future of CTD within the Topps Group and look forward to welcoming our new colleagues to the business.”
