UK tools and machinery company collapses into administration – in business since 1972 | UK | News
The giant family company, honored by the king, collapsed into administration after 53 years of operation.
But around 150 of Axminster Tools’ jobs and remaining stores were saved after the retail and manufacturing parts of the business were sold to start-up companies run by some of the same executives. Writing to creditors, administrators said a sale “at the highest level of consideration” was the best way for the “key” south-west business to survive. Devon Live reported.
The company will close stores in Basingstoke, Nuneaton, Newcastle and Warrington in 2023 and 2024 and cut more than 60 jobs. Last year’s accounts showed turnover fell by more than £5 million and Axminster Tool Center Ltd made a pre-tax loss of £2.23 million. According to the newspaper, it was announced this week that the management of the company was terminated.
On appointment, the administrators immediately sold the retail business, including its stores and wholesale operations, to Newhow Ltd and the manufacturing facility to NuCo Tools Ltd, which was established in September.
Newhow is controlled by Alan Styles and Timothy Styles, managing directors of Axminster Tool Center Ltd. Nuco Tools Ltd is controlled by Hayley Jones and Ian Styles, both directors of Axminster Tool Center Ltd.
Richard Lewis and Alistair Wardell of Grant Thornton UK Advisory and Tax LLP were appointed joint administrators of Axminster Tool Center Ltd on 21 October. Mr Lewis told Devon Live today: “Management has pursued a period of sustained financial pressure. While the business has experienced growth in turnover and profitability during the Covid-19 pandemic, the subsequent contraction in the DIY market and difficulties in adapting the company’s strategic direction to evolving market conditions have led to losses in 2023 and 2024.” and ultimately the bankruptcy of the company.”
*** Ensure our latest headlines always appear at the top of your Google Search by making us your Preferred Source. Click here to activate or add us as a Preferred Source in your Google search settings. ***
Devon Live also added that Mr Lewis had initiated an accelerated sale process of Grant Thornton in the six to eight weeks before the appointment, which resulted in the joint administrators appointing the company’s retail business, including stores and a wholesale distribution operation, to Newhow Ltd and its manufacturing facility to NuCo Tools Ltd.
He added: “Whilst the marketing exercise was as comprehensive as possible in the time available, new companies established by different parts of the company’s director and shareholder group presented the highest level of interest. As part of the transactions, all 149 of the company’s employees were transferred to the receivers and the sales provided the best opportunity for a significant business in the South West to continue operations with minimal disruption to customers.”
