250 jobs at risk as garden products supplier Solus enters administration
A WORCESTERSHIRE garden products supplier has entered administration threatening the jobs of 250 people – 172 in the West Midlands.
Rob Hunt and Tony Barrell of PwC have been appointed joint administrators of Solus Garden & Leisure Ltd. They have said they are hopeful of securing a sale.
With a head office in Hunnington, near Halesowen, Solus is a leading wholesale supplier of garden and leisure products. It had a turnover of £29.3m in the six months to March 30, 2014 and employs around 250 people across its various locations. As well as wholesaling third-party products, the company has a portfolio of well-known brands including: Yeoman, Joseph Bentley, ChapelWood, Garden Nation, Botanico and Bermuda.
PwC said that in late 2013, in the face of difficult trading conditions, the company had sought additional investment to support a turnaround.
It said the directors of the business had been in talks for several weeks with a range of parties to try and secure the investment. However, while some interest was shown in the business, no offers were provided and as a result, the directors decided they had no option but to place the company into administration.
Tony Barrell, joint administrator and director, PwC said: “Our immediate priority is to engage with employees, key customers and suppliers with the aim of continuing to trade; which we believe is achievable. We are pleased to confirm that employees will be paid for work done prior to our appointment and whilst they continue to work.
“We are hopeful of securing a sale and there are already a number of parties interested in purchasing the business.”
The company has four locations in the West Midlands: Droitwich (employing 90 people), Hunnington (63), West Bromwich (16) and Tipton (3).
Established over 30 years ago, when the garden centre industry was in its infancy across the UK, Solus (originally trading as Gibbs Palmer (Midlands) Ltd) went on to establish itself as a leading distributor of garden and leisure goods.
Since the introduction of its first garden tool brand ‘Yeoman’ in October 1991, Solus continued its rapid expansion to become the main supplier of key brands to many garden and leisure retailers across the UK and overseas.
Each of the Solus brands is supported by its own specialist brand management and sales team.
It is ironic that the administration should come now – just days after a new survey revealed consumer spending at garden centres had seen a 20% rise year-on-year.
