DIY giant Toolstream falls into administration as 111 jobs are axed

Toolstream, the Yeovil-based importer and distributor of DIY tools, has collapsed into administration, with 111 workers set to lose their jobs 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 is 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. Hywel Phillips, joint administrator, said: 'Regrettably, the closure of the companies has led to 111 redundancies and our priority is providing support to all those made redundant. We appreciate that this is a very difficult and uncertain time for all involved.' It is understood that staff were called to a meeting late last week and asked to remain at home until further notice. The affairs, business and property of both companies are now under the control of the administrators.

Administrators told Builders' Merchants News the companies experienced challenging trading conditions in the aftermath of the Covid-19 global supply crisis, resulting in limited stock availability. This had a knock-on effect on profitability and, despite efforts to work with stakeholders to secure the funding required to continue trading on a solvent basis, no agreement was reached. Administrators said they had taken the decision to pause trading and were inviting interest from any parties who may wish to acquire the assets of the companies. A small number of staff have been retained to assist the administrators with the ongoing operations.

The latest Companies House accounts for 31 July 2024 were overdue. Profits in its latest accounts made up to 21 July 2023 were reported as £57.7million.

Turbulent times for retailers continue to shape the sector. Retailers have been grappling with higher employer National Insurance and wage costs as a result of the Budget announcements in the previous year. This year, households and businesses are facing the £26billion of tax hikes announced in November. In September, the future of fashion accessory chain Claire's was secured in Britain with the sale of more than half of its stores, but doubts remain over the fate of its remaining shops and jobs. Modella Capital bought the WH Smith High Street stores and agreed to purchase 'substantially most' of Claire's UK, with the new deal saving around 1,000 jobs and 156 stores, though 145 stores were not included. In August, Poundland avoided collapsing into administration after its turnaround plan was approved just days before the chain was due to run out of money. Back in April, Hobbycraft announced plans to shut at least nine stores in a move affecting up to 126 jobs as part of a restructure. Modella Capital bought the arts and crafts seller from the equity firm Bridgepoint in 2024.

Administrators said they paused trading and were inviting interest from any parties who may wish to acquire the assets of Toolstream and related entities. The process will focus on preserving value for creditors while supporting staff through the transition. No further details on potential buyers or timelines were provided at this stage.