British tile supplier CTD Tiles is facing the possibility of entering administration as the company struggles in the current economic downturn. According to sources, the company filed a notice of intention to appoint administrators on Monday while efforts are being made to secure a buyer.
Interpath Advisory has been appointed to oversee the sale process, which may result in a pre-pack administration later this month. The potential buyers have not been disclosed at this time. CTD Tiles, which was acquired by former Body Shop owner Aurelius in 2022, specializes in supplying ceramic tiles to both commercial and residential customers. The company operates 87 stores and employs approximately 400 people from its headquarters in Newcastle.
Insiders have revealed that CTD’s revenues are expected to drop by 30% this year, down from £113 million in 2023. This decline reflects the challenges faced by the industry as a whole. The company primarily serves large housebuilders, many of which have been affected by the current economic climate. Despite the new Labour government’s promise to boost housebuilding, these macroeconomic headwinds have continued to impact the market.
Other players in the tile sector, such as Tile Giant, Tile Choice, and Johnson Tiles, have also faced financial and trading difficulties. However, sources have noted that CTD Tiles has managed to withstand these challenges for a longer period due to additional financial support from its owner.
Recent discussions have taken place between Aurelius and key stakeholders in an attempt to find a solution for the company’s financial struggles. However, Aurelius has declined to comment on the matter at this time.
