Victorian Plumbing announces the closure of Victoria Plum due to financial losses.
- The decision follows nearly £2m loss incurred after acquiring Victoria Plum.
- Operations to cease by 31 December following a consultation with the workforce.
- Despite challenges, Victorian Plumbing anticipates meeting its adjusted EBITDA expectations.
- The retailer continues to experience growth through robust customer demand and internal transformations.
Victorian Plumbing has announced its decision to shutter rival bathroom retailer Victoria Plum, which it acquired in May, after suffering a financial setback of almost £2 million. The company confirmed plans to halt all operations by 31 December, following the completion of a consultation process involving the workforce at Victoria Plum.
CEO Mark Radcliffe described the closure as “a significant opportunity to accelerate growth” and to refocus investment efforts on the Victorian Plumbing brand and its marketing initiatives. Despite the losses, the company remains optimistic about its financial outlook, expecting its adjusted EBITDA for the year ending in September to align with market expectations.
The decision is underscored by a rise in overall revenue by 4%, although like-for-like revenue experienced a 1% decline when excluding acquisitions, such as that of Victoria Plum. Victorian Plumbing attributes its resilience to a “robust customer demand” that has propelled a record-breaking 10% increase in order volume, exceeding one million orders.
Customers have shown a positive response towards Victorian Plumbing’s own-brand ranges, which has yielded significant gains in gross margins. CEO Radcliffe noted an “increase in profitability” as their own brand offerings align well with customer preferences, enhancing their position as the leading bathroom retailer in the UK.
In addition to strategic product offerings, the company has invested substantially in infrastructure, including a 544,000 sq ft semi-automated distribution centre in Lancashire, which has become operational. This facility is intended to eliminate previous capacity constraints, aiming to dispatch more than half of all daily orders, with the goal to handle all orders by year-end.
Mark Radcliffe expresses confidence in the ongoing strategic direction and growth prospects of Victorian Plumbing despite current challenges.
