Several prominent retailers in the UK faced financial difficulties in 2024, leading to administrations and acquisitions.
- Homebase and The Body Shop were among the well-known names that encountered severe challenges.
- Carpetright and The Floor Room faced similar issues with their financial stability.
- Tile supplier CTD Tiles avoided closure through acquisition, but not without controversy.
- Ted Baker and Matches experienced ownership changes amidst financial stress.
In 2024, the retail industry witnessed a significant number of stores entering administration, with notable names like Homebase failing to secure a new buyer. Despite working with administrators, the company plunged into administration, eventually selling its brand name and several stores to CDS Superstores in a deal worth £25.6m. This transition, however, jeopardised 49 stores and approximately 2,000 jobs.
CTD Tiles managed to avert closure following an acquisition by Topps Tiles in August. Topps purchased 30 stores and associated brands, considering them a complement to its existing portfolio. However, this acquisition did not include 56 stores, which faced closure. The decision drew criticism from Topps’ major shareholder, MS Galleon, who expressed concerns over the rationality of the purchase.
Carpetright, a significant player in the flooring market, entered administration in July. Unable to secure new investments, the company was sold to rival Tapi. Despite the acquisition of intellectual property and 54 stores, the entire business’s survival was deemed unviable due to longstanding debts, which also left many creditors and customers unpaid.
The collapse of Carpetright had a domino effect on The Floor Room, its sister company, which subsequently closed all its operations. This swift shutdown resulted in 201 job losses. In response, John Lewis offered employment opportunities wherever possible to the affected employees.
The fancy dress retailer Smiffys faced financial challenges, culminating in its acquisition by Ad Populum. This purchase, conducted through a pre-pack deal, saved the brand which had suffered during the pandemic due to reduced demand for its products.
Ted Baker and Matches also joined the list of retailers undergoing significant restructuring. Ted Baker’s UK operator filed for administration after its partnership with AARC deteriorated, leading to store closures and job losses. Meanwhile, Matches found itself in a similar situation under Frasers Group, which placed it in administration just months after acquisition, resulting in substantial redundancies.
Muji, facing a broader organisational restructuring, filed for administration, retaining its UK stores under a new plan set to attract investment and enhance its e-commerce operations. Similarly, Farfetch was sold to Coupang after navigating financial uncertainty and exploring several potential deals.
Emerging from administration, The Body Shop found new ownership under Aurea, which intends to reform the business’s strategic direction. Meanwhile, Lloyds Pharmacy has shifted focus online after a strategic decision to liquidate its physical operations, also influenced by reductions in government funding.
The retail landscape in 2024 has been marked by significant upheaval as numerous companies faced financial difficulties, leading to closures, acquisitions, and strategic restructuring.