One of Britain’s biggest tile suppliers is on the brink of administration amid a wider downturn in the sector.
Sky News has learnt that CTD Tiles filed a notice of intention to appoint administrators on Monday as advisers scramble to line up a buyer.
Sources said that Interpath Advisory was overseeing a sale process that could lead to a pre-pack administration later this month.
The identity of the prospective buyers was unclear on Monday.
CTD, which was acquired by former Body Shop owner Aurelius in 2022, supplies ceramic tiles to commercial and resident customers.
Based on Newcastle, it trades from 87 stores and employs about 400 people.
Insiders said that CTD’s revenues were expected to slump by about 30% this year – from £113m in 2023 – reflecting the decline being experienced elsewhere in the industry.
CTD’s client base is principally made up of large housebuilders, many of which have been buffeted by macroeconomic headwinds even as the new Labour government pledges to jumpstart a housebuilding boom across the country.
Other players in the tile sector, including Tile Giant, Tile Choice and Johnson Tiles, have also experienced financial and trading difficulties.
One source said that CTD had managed to withstand the pressures facing it for longer than rivals because its owner had provided additional financial support to alleviate liquidity shortfalls.
Discussions are said to have taken place between Aurelius and key stakeholders in recent months.
Aurelius declined to comment.
Content Source: news.sky.com