DIY giant Toolstream falls into administration, 111 jobs cut ahead of Christmas

Toolstream, a Yeovil-based importer and distributor of DIY tools, has collapsed into administration, with 111 staff redundancies announced ahead of Christmas. The board of Toolstream and Group Silverline Limited appointed Hywel Phillips and Gavin Park of Teneo Financial Advisory as joint administrators on 11 December. Toolstream was the sole distributor of more than 6,000 hand tools, power tools, fixings and workwear to retailers, wholesalers and merchants across Britain and Europe.

Toolstream is a wholly owned subsidiary of Silverline, which owns the freehold property from which it operates. The administrators said the closure was necessary after trading conditions became challenging in the aftermath of the Covid-19 global supply crisis, resulting in limited stock availability and a knock-on effect on profitability. They noted that, despite efforts to secure funding to continue trading on a solvent basis, no agreement was reached. A small number of staff have been retained to assist the administrators with ongoing operations. Administrators said they had paused trading and were inviting interest from any parties who may wish to acquire the assets of the companies.

The companies’ affairs, business and property are now under the control of the administrators. The latest Companies House accounts for 31 July 2024 were overdue, while profits in the latest accounts up to 21 July 2023 were reported as £57.7 million. Industry observers note that the collapse comes amid wider strains in the retail sector, as retailers contend with higher employer national insurance and wage costs following tax measures announced in the Budget and, more recently, in November’s tax hikes.

In September, the fashion and accessories retailer Claire’s secured the sale of more than half of its U.K. stores, a deal that preserved around 1,000 jobs but left uncertainty for remaining shops and staff. In August, Poundland avoided a collapse when its turnaround plan was approved just days before it could run out of money. Earlier in the year, Hobbycraft announced store closures affecting up to 126 jobs as part of a broader restructuring. Modella Capital later bought Claire’s U.K. operations from the previously involved equity firm, a move that affected a subset of Claire’s stores and jobs. These broader sector developments illustrate the volatility facing consumer and DIY-related retailers as they navigate evolving costs and supply chain pressures.

Administrators told Builders’ Merchants News that the companies faced challenging trading conditions in the aftermath of the Covid-19 supply crisis, resulting in limited stock availability and a knock-on effect on profitability. While efforts to secure funding to continue trading on a solvent basis were unsuccessful, the administrators have indicated they will consider offers for the company’s assets from potential buyers as part of winding down or restructuring. The focus now is on supporting those affected and pursuing any viable sale of assets.

The decision to place Toolstream and its parent into administration marks a significant setback for the UK DIY supply chain, given the company’s role as a key distributor to retailers across Britain and Europe. As administrators assess options, stakeholders will monitor whether parts of the business can be retained or reconstituted under new ownership, and what that could mean for supplier relationships, stock levels, and regional distribution capabilities in the run-up to the new year.