Mon, 19 Feb 2024 | BUSINESS SALE
Administrators have secured the sale of the majority of the business and assets of a timber and builders’ merchants based in South Wales. T.G. Howell & Sons Limited, trading as Terry Howell Timber & Builders’ Merchants, fell into administration earlier this month after suffering from mounting financial difficulties over recent years.
Huw Powell and Katrina Orum of Begbies Traynor in Cardiff were appointed as joint administrators and secured a pre-packaged sale of the majority of the business and its assets to Robert Price (Builders’ Merchants) Limited in a deal supported by Gavel Auctioneers.
Terry Howell Timber and Builders’ Merchants has been a family-owned business since it was founded in 1953. The company, which has branches in Newport and Pontypool, initially manufactured ladders before establishing itself as one of South Wales’ leading independent timber and builders’ merchants. The firm also operated a five-acre wholesale distribution yard that specialised in timber treatment.
The company began to suffer from increasingly unpredictable trading conditions in the timber market during the COVID-19 pandemic, which was then exacerbated by a shift in the market, leading to falling margins. Despite efforts to cut costs, the company began incurring unsustainable losses, largely attributed to its wholesale business, ultimately leading to it being placed into administration.
The rescue deal will see the company’s two builders’ merchant stores continuing to trade, but the wholesale operation will close. Despite the closure of the wholesale side of the business, no redundancies have been made, with the pre-pack acquisition securing all 53 jobs at the company.
Joint administrator and Begbies Traynor partner Huw Powell said: “Terry Howell began to experience financial difficulties and volatile trading as a consequence of the pandemic. This was further exacerbated by a shift in the post-Covid market with margins falling away over the past 18 months.”
“This is a bittersweet outcome for the directors and family, but the fact that they sought advice quickly has helped to secure a positive outcome for all of the company’s employees and we expect that creditors will share in a return that will exceed what is achieved in most insolvencies.”
“I would like to thank the directors and management team at Terry Howell, the team at Robert Price and all of the advisers involved in the transaction for their hard work in achieving this outcome. As a family business with 29 branches across South Wales and Herefordshire, Robert Price represents a very positive opportunity for the Terry Howell team.”
Robert Price Managing Director William Godfrey added: “The branches will continue to trade under the Terry Howell brand in the short term, as we work to ensure a smooth and efficient integration into the Robert Price Group. Terry Howell customers will continue to receive the same great service they have experienced to date, and we hope they will take advantage of the additional benefits associated with the Robert Price group.”
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