Skelmersdale-based bathroom retailer Victorian Plumbing Group has announced plans to close rival Victoria Plum after acquiring the business earlier this year.
Since it was bought in a £22.5m deal in May, Victoria Plum has contributed £15m revenue and incurred an adjusted EBITDA loss of around £2m.
Now, following consultation with Victoria Plum’s workforce, its new owner has taken the decision to shut the business and its operations in Doncaster. The closure is expected to be completed by December 31.
In an update on trading Victorian Plumbing said revenues for its financial year 2024 had risen by around four per cent on the previous year.
Its adjusted EBITDA was expected to be in line with market expectations.
The group also confirmed that its new 544,000 sq ft semi-automated distribution centre in Leyland is now operational, with more than half of all daily orders being dispatched from the new site.
It expects all orders to be dispatched from the new distribution centre by the end of the calendar year.
Mark Radcliffe, chief executive of Victorian Plumbing, said: "I am pleased with the group's performance in FY24 which has been a very busy year for Victorian Plumbing.
"We have increased profitability, as our higher margin own brand proposition continues to resonate with customers and consolidated our leading position as the UK's number one bathroom retailer.
"At the same time, we have delivered a year of transformational change with significant investment in our people, technology and operations.
"Our state-of-the-art new distribution centre is now operational and will remove previous capacity constraints, enabling us to serve customers more efficiently and execute on our strategic growth plans in our expansion categories and our trade proposition.
"Moreover, the recent decision to close Victoria Plum provides the group with a significant opportunity to accelerate growth and continue to further the investment in our brand and marketing.
"This positive momentum and the successful delivery of our warehouse transformation reaffirms confidence in our profitable growth strategy that is delivering long-term value for all stakeholders."
Victorian Plumbing is the UK's leading bathroom retailer, offering a wide range of more than 34,000 products to B2C and trade customers.
The group provides a 'one-stop shop' solution for the entire bathroom with more than 150 own- and third-party brands across a wide spectrum of price points.
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