Hitchcock & King, a well-known builder’s merchant, has entered administration once more, highlighting ongoing industry challenges.
- The company, trading across six London locations, appointed administrators on 31st July 2024 due to financial difficulties.
- Recent efforts to sell the business were unsuccessful, leading to the unavoidable appointment of joint administrators from Interpath Advisory.
- Although operations continue temporarily to manage stock sales, significant redundancies have occurred, impacting staff.
- Despite generating £13m in 2023, Hitchcock & King faced declining profits and rising operational costs.
Hitchcock & King, a long-established builder’s merchant in London, has once again entered administration amidst ongoing financial struggles. This marks yet another significant blow to the company, known for its operations across six key sites including Ashford and Hammersmith. The administrators, Steve Absolom and Nick Holloway from Interpath Advisory, took charge on the 31st of July 2024, facing a challenging task ahead.
The merchant has faced a decline over recent years, attributed to rising operational costs and shrinking profit margins. Despite efforts to explore various business solutions, including a potential sale, the directors were unable to secure a viable way forward. Consequently, the difficult decision to appoint administrators was made, reflecting the harsh reality of current market conditions.
In an attempt to mitigate the situation, the joint administrators will keep the business running temporarily. This short-term operation aims to liquidate remaining stock and explore any remaining viable options for the broader business model. However, significant staff changes have occurred during this transition, with 27 employees being made redundant, though 37 remain to assist with the ongoing efforts.
Steve Absolom expressed his regret over the situation, stating, “Whilst Hitchcock & King will remain open for business in the short term to clear through the stocks of building supplies, there’s no doubt that this is an extremely sad day for this long-running family business and its team of hard-working, loyal employees.” Support for those affected, particularly in making claims to the Redundancy Payments Service, has been highlighted as a priority by the administrators.
The financial performance of Hitchcock & King reflects the challenges faced, with a reduction in turnover from £16m in 2022 to £13m in 2023. This decline underscores the financial strain that ultimately led to the company’s current predicament, despite the storied history and long-standing presence within the London markets.
The administration of Hitchcock & King underscores the challenging environment faced by the UK’s construction merchant sector.
