Victorian Plumbing is set to close Victoria Plum, the rival it acquired in May, after incurring a nearly £2m loss since the purchase.
The retailer plans to cease operations by 31 December after it finalised a consultation process with Victoria Plum’s workforce.
Victorian Plumbing CEO Mark Radcliffe said that the decision to close the retailer “provides the group with a significant opportunity to accelerate growth and continue to further the investment in our brand and marketing”.
Despite the loss from Victoria Plum, the retailer expects adjusted EBITDA for the year ending September to meet expectations, fueled by strong customer demand.
It saw revenue rise 4%, though like-for-like revenue fell 1% when excluding its acquisition of Victoria Plum.
“Robust customer demand” drove a 10% growth in order volume, to surpass 1m orders – a record for the bathroom specialist.
The retailer said customers are responding well to its own brand ranges which has led to strong gross margin gains.
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Radcliffe said: “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.”
The retailer said its new 544,000 sq ft semi-automated distribution centre in Lancashire is now operational, with more than half of all daily orders being dispatched from the site. It expects the site to handle all orders by the end of the year.
Radcliffe added the warehouse would “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”.
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