Victorian Plumbing is set to close Victoria Plum following financial difficulties.
- The closure follows a £2 million loss since acquiring Victoria Plum in May.
- Operations at Victoria Plum will cease by the end of December.
- Victorian Plumbing anticipates strong financial performance despite the incurred losses.
- A new distribution centre is expected to enhance operational efficiency.
Victorian Plumbing has announced its decision to shutter Victoria Plum, the competitor it acquired earlier this year, due to substantial financial losses approximating £2 million. This decision, which comes into effect following a comprehensive consultation with the workforce, will see operations cease by 31 December. Mark Radcliffe, CEO of Victorian Plumbing, accentuated the closure as an opportunity to streamline operations and bolster investments in their core brand and marketing endeavours.
Despite the financial setback attributed to Victoria Plum, expectations remain buoyant for Victorian Plumbing’s adjusted EBITDA by the end of the fiscal year. Strong consumer demand has been a crucial factor in their optimism, with overall revenue enjoying a 4% uptick. However, it is noteworthy that when excluding the acquisition of Victoria Plum, like-for-like revenue experienced a marginal decline of 1%.
Victorian Plumbing reports a remarkable 10% increase in order volumes, topping 1 million orders—a milestone for the bathroom retailer. This surge is primarily driven by the popularity of their own brand products, which have also contributed to solid gross margin improvements. These dynamics underscore a robust response from consumers towards Victorian Plumbing’s high-margin offerings.
Further strengthening their operational capabilities, Victorian Plumbing’s new 544,000 square foot semi-automated distribution centre in Lancashire is now operational. More than half of all orders are currently being dispatched from this facility, with expectations for the site to handle all orders by the years’ end. Radcliffe has emphasised that the new warehouse will alleviate former capacity challenges, enabling more efficient customer service and supporting strategic growth in new product areas.
In reflecting on their achievements, Mark Radcliffe stated, “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.” He further highlighted the year’s transformative changes with notable investments in personnel, technology, and operational processes.
Victorian Plumbing’s strategic decisions aim to stabilise and cultivate future growth following Victoria Plum’s closure.
