0800 644 6080
Call FREE from Landline and Mobile
Est. 1989

Bathstore Facing Administration Amid Cashflow Crisis

Written by: Keith Tully

Published: 20th June 2019

Bathstore Facing AdministrationThe bathroom retail business Bathstore is facing the prospect of entering administration and potentially putting around 700 jobs in jeopardy.

Reports suggest that the owner of the company is unwilling to inject the cash required to keep it trading from a position of solvency, with advisers having been appointed in recent days to handle what could soon be an administration scenario.

Bathstore is headquartered in Welwyn Garden City in Hertfordshire and has a total of 168 store locations across the UK.

The business was acquired by the American billionaire Warren Stephens in 2014 after he backed a management buyout process to take control of Bathstore, which was founded initially in 1990 before being bought by the building firm Wolseley in 2003.

Bathstore outlets increased significantly in number from around 33 to 170 during the period when it was owned by Wolseley.

However, like so many high street retail operators, the business has been struggling to remain profitable in recent years, with its latest full-year financial results showing pre-tax losses of £22 million on sales of £141 million.

A new chief executive was installed at the top of the company last year and turnaround plans were implemented with the aid of a loan worth £15 million.

Trading though has remained tough for retailers and not least those selling bathrooms, with one of Bathstore’s main rivals Better Bathrooms having collapsed into administration in March of this year with the loss of 325 jobs.

Bathstore’s entry into administration would be the latest addition to a growing list of retailers to have become insolvent in recent months.

Retailers including House of Fraser, Toys R Us and Maplin all entered administration during the last 18 months, while others including New Look, Debenhams and the Arcadia Group, the owner of Topshop and Topman, all recently entered Company Voluntary Arrangements (CVA).

The women’s and children’s clothing brand Monsoon, which has dozens of stores open across the UK, is also currently in the process of seeking to agree the terms of a CVA rescue deal with its creditors.

Tens of thousands of jobs have been lost across the UK’s retail sector over the course of the past few years.

Keith Tully

Keith Tully

Join Keith Tully on Linked In Follow Keith Tully on Twitter

Keith has been involved in Business Rescue since 1992, during which time he’s worked for both independent and national firms. His specialties include company restructuring matters and negotiating with HMRC on his clients behalf.

Meet our Team of Experts
Director Support - Business suffering from Cash-Flow Problems?
If your company is financially distressed, we also offer the below services:
Business debt recovery

  • Recover Unpaid Invoices of £5k+
  • Expert Credit Control Services
  • Stop Late Payers & Bad Debts
Visit Site
Time to pay experts

  • Get Breathing Space with HMRC
  • Support with Business Tax Arrears
  • 35 Years HMRC Negotiation
Visit Site
UK Business Finance

  • Rejected for a CBILS Loan?
  • Get Emergency Business Funding
  • Supporting 1000+ UK Companies
Visit Site
Who we help
  • Company Directors
  • Finance Directors
  • Sole Traders
  • Accountants
  • Small Businesses
  • Large Businesses
  • Partnerships
Contact our team
Jonathan Munnery
Gillian Sayburn
Julie Palmer
or Find your Nearest Office

Here at Real Business Rescue we take your privacy seriously and will only use your personal information to contact you with regards to your enquiry. We will not use your information for marketing purposes. See PRIVACY POLICY

Business Rescue Advice for Directors
Free Guide for Limited Company Directors
Business Rescue Advice for Directors
  • How to manage company cash flow problems
  • Advice on dealing with HMRC
  • Understanding rescue and closure options
  • And much more...
Free Guide Download
Dealing with your Insolvent Clients
Business Rescue Guide for Accountants
Dealing with your Insolvent Clients
  • Helping you advise insolvent clients
  • Spotting signs of client distress
  • Exploring business rescue options
  • And much more...
Free Guide Download
Our numbers speak for themselves
Number of UK Offices
Directors Helped
Licensed Insolvency Practitioners