The struggling retailer, Bathstore takes a deep plunge. Which has put 500 jobs at risk. The loss-making company has appointed administrators at the business services firm BDO, which said the retailer would continue to trade for now in the hope it could be sold as a going concern. So far, administrators have not received any offers.
The retailer has 132 stores and 529 staff. Most employees – 405 people are shop workers, while 124 are in the head office in the Welwyn City, Hertfordshire.
Bathstore made a pre-tax loss of £22m in the year to 31 July 2017 with sales of £141m, according to the last set of results filed with Companies House. The loss reflected exceptional costs of £11m, including a £5.4m writedown on the value of its stores and leases.
Last year, the company embarked on a turnaround plan. Stephens provided a £15m loan and extended the maturity of previous loans to the end of next month. It also appointed a new chief executive, Ian Herrett, who joined in May 2018 from the builders’ merchants Wolseley UK.
Its rival Better Bathrooms slumped into administration in March with the loss of 325 jobs. The £1bn-a-year bathroom retail sector has been hit by the slowdown in the housing market and weak consumer confidence, with sales of big-ticket items particularly hard hit.
