Amid significant challenges, the UK’s largest distributor of decorative surfaces has been placed up for sale. International Decorative Surfaces (IDS) has entered administration.
The company grappled with a severe slowdown in the property and construction sectors, rendering it unable to secure additional funding.
Background of IDS
IDS, one of Europe’s largest distributors of decorative surface materials, boasted a vast inventory of over 6,000 products. It played a pivotal role in the decor industry, providing essential materials to various sectors.
After being carved out from French multinational Compagnie de Saint-Gobain, IDS underwent a management buyout in 2022, backed by private equity investor Chiltern Capital. This deal also included a significant asset-based lending facility from Secure Trust Bank Commercial Finance.
Operational Scope
The business managed a sprawling half a million sq ft of warehousing space, supported by a fleet of 85 vehicles. This enabled IDS to handle over 50,000 transactions monthly and offer nationwide delivery within 24-48 hours.
Despite the current turmoil, 11 of IDS’s 12 locations, including sites in Newcastle-under-Lyme, Nuneaton, and Leeds, remain operational. The company’s extensive reach and quick delivery capabilities have been key strengths.
Leadership and Staff Changes
In the last year, IDS had focused on enhancing its operational systems, product lines, and workforce. Under the leadership of CEO Andy Sutton, significant investments were made.
However, the departure of key figures such as CFO Kevin Riddle and managing director John Bagshaw marked a period of instability. Both had been instrumental in guiding the company through its formative years and subsequent transformations.
Additionally, Tony Buffin, with his extensive board experience, was introduced as chair. His background includes roles at Travis Perkins and Kingfisher.
Administration and Current Status
Administrators from FRP Advisory, specifically Alastair Massey and Tony Wright, have been appointed to oversee the sale of the business and its assets. Their immediate goal is to explore all potential avenues to secure IDS’s future.
According to Massey, despite the difficulties faced, IDS still possesses considerable strengths. The search for a potential buyer is actively underway.
Massey stated, ‘We’re now focused on exploring all options to secure a future for the business, including marketing it for sale and we would encourage any parties interested in acquiring the business to make contact with us as soon as possible.’
Impact on Employees
IDS employed a total of 393 staff across its 12 locations. Unfortunately, a portion of the workforce has already been made redundant due to the financial strain.
Efforts are being made to ensure that the remaining sites remain functional and that staff are kept informed about ongoing developments. The stability of employment at these locations is a priority.
Financial Performance
In its most recent accounts filed at Companies House, IDS reported revenues exceeding £78.7 million. This financial performance underscores the company’s substantial role in the market.
At its peak, IDS employed 525 staff, indicating a significant reduction in workforce over recent times.
The financial health of the company has been severely impacted by the slowdown in the property and construction sectors, contributing to its current predicament.
Future Prospects
The future of IDS now hinges on finding a suitable buyer who can leverage its existing strengths. The extensive warehousing, efficient distribution network, and broad product range make it a valuable acquisition.
The administrators are optimistic about the prospects of securing a buyer given IDS’s market position and operational capabilities.
The market now waits to see what the future holds for IDS. The emphasis is on securing a buyer to preserve jobs and continue operations.
This situation highlights the broader challenges facing the property and construction sectors, affecting suppliers and distributors alike.
