In a surprising turn of events, the UK’s largest distributor of decorative surfaces faces administration, just two years post-management buyout.
- The company, International Decorative Surfaces Limited (IDS), attributed its financial difficulties to a slowdown in property and construction sectors.
- Joint administrators, Alastair Massey and Tony Wright of FRP Advisory, have been appointed to navigate the company’s future.
- IDS boasts extensive infrastructure, including significant warehousing and a large delivery fleet, despite recent redundancies.
- The administrators continue to market the business, highlighting its strengths amid ongoing trading activities.
In a development that has caught many by surprise, International Decorative Surfaces Limited (IDS), previously the United Kingdom’s largest distributor of decorative surfaces, has entered administration merely two years after undergoing a management buyout. This move stemmed from extensive financial difficulties exacerbated by a marked slowdown in the property and construction sectors, as detailed by the newly appointed joint administrators Alastair Massey and Tony Wright of FRP Advisory.
IDS boasts significant operational capabilities across its 12 sites in England and Scotland, with 11 still functional even amidst the current financial turbulence. Originating from a 1999 merger of L Bloom and Meyer Laminates, the company was later acquired by Saint-Gobain in 2000, and its most recent iteration followed a management buyout in 2022 supported by Chiltern Capital.
Despite the operational challenges, the business continues to execute stock trading activities while marketing its assets for sale. At the time of the administrators’ appointment, IDS had nearly 400 employees, although recent administrative measures have unfortunately led to some redundancies. Nevertheless, the company’s robust warehousing infrastructure and fleet of 85 delivery vehicles are highlighted as substantial assets.
Alastair Massey from FRP Advisory acknowledged the profound challenges faced by IDS but emphasised that the business retains considerable strengths which prospective buyers might find appealing. “While IDS has faced significant challenges in recent months, it remains a business with considerable strengths and capabilities,” he noted, expressing a proactive approach to securing the company’s future through a potential sale.
The administrators are actively exploring opportunities to realise a future for IDS that leverages its extensive assets and client transactions, which number over 50,000 monthly. They are open to discussions with interested parties who might be inclined to invest in or purchase the business outright.
Despite the challenges, the ongoing efforts to secure a buyer highlight IDS’s underlying corporate strengths.
