Victorian Plumbing Plans To Close Victoria Plum

Victorian Plumbing has confirmed its intention to close Victoria Plum, just months after acquiring the business. Approximately 100 jobs are at risk.

A Victorian Plumbing spokesperson said: “Following the acquisition of AHK Designs Ltd, we are proposing a closure plan for VictoriaPlum.com. As a result we have entered into a consultation period with a number of VictoriaPlum.com colleagues and only when the period completes can we provide an update.

“We are committed to keeping all employees, suppliers and connected parties up to date as we progress with the consultation. This proposal does not impact Victorian Plumbing Ltd.”

The business has experienced a number of ownership changes in recent years. In 2019, private equity firm Endless supported Victoria Plum's CEO Paul McClenaghan and the rest of the management team to undertake a management buyout from its existing owners: TPG Capital. Endless backed the management team’s plan to continue investing in its people, digital and retail experience, as well as expanding its product and services offering. 

AHK Designs, an affiliate of a company which owns Beds.co.uk and Cox & Cox, acquired Victoria Plum from Endless in late 2023 in a pre-pack administration deal.

Victoria Plum announced the acquisition of Victoria Plum from AHK Designs in May 2024, for a purchase price of £22.5m. The acquisition was on a: "cash free, debt free basis, subject to adjustment for normalised working capital. The purchase price represents c.0.5x Victoria Plum's estimated annual revenue and reflects the significant strategic value of the Victoria Plum brand and associated intellectual property.

"For the six months ended 31 March 2024, unaudited management accounts indicate that Victoria Plum held c.£10m of stock at provisional book value, cash of c.£3m, deposits with suppliers of c.£2m and tangible fixed assets of c.£1m."

Source : Insight DIY

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