Victorian Plumbing has made the decision to close Victoria Plum following a significant financial setback.
- The acquisition of its rival, Victoria Plum, in May resulted in a nearly £2 million loss.
- The closure is set to take place by 31 December after consulting with Victoria Plum’s employees.
- Despite the loss, Victorian Plumbing is expected to meet market expectations for its adjusted EBITDA for the year.
- The company has seen a rise in revenue and order volume, driven by strong customer demand.
Victorian Plumbing, a prominent retailer, has announced its decision to shut down Victoria Plum, its competitor acquired earlier this year in May. The decision follows a substantial financial loss of nearly £2 million subsequent to the acquisition. The closure will be executed by 31 December this year, completing a consultation process with Victoria Plum’s workforce.
The company’s Chief Executive Officer, Mark Radcliffe, elaborated on the closure as an opportunity for Victorian Plumbing to enhance its growth trajectory and bolster branding and marketing efforts. Despite the financial loss associated with Victoria Plum, the company maintains a positive financial outlook, anticipating that its adjusted EBITDA will align with market predictions for the fiscal year ending 30 September 2024.
Victorian Plumbing has experienced a 4% increase in overall revenue; however, like-for-like revenue experienced a minor decline of 1%, excluding the financial implications of acquiring Victoria Plum. The business attributes a record-breaking surge in order volume, a 10% increase surpassing one million orders, to robust customer demand.
The retailer’s CEO further stated that customers have responded positively to the company’s proprietary brand ranges, resulting in notable gains in gross margins. Radcliffe highlighted 2024 as a transformative year, marked by strategic investments in personnel, technology, and operational infrastructure.
In addition to these developments, Victorian Plumbing’s new semi-automated distribution facility in Lancashire is now operational, handling over half of the company’s daily orders. It is projected to manage all orders by year’s end, addressing prior capacity constraints and facilitating efficient customer service.
The closure of Victoria Plum marks a strategic move for Victorian Plumbing to streamline operations and focus on brand enhancement.
