AHK Designs, which owns Beds.co.uk and furniture store Cox & Cox, bought Victoria Plum, one of the best online bathroom stores in the UK, in a pre-pack closure deal.
EY, managing the acquisition, rescued all 300 Victoria Plum employees who were grappling with global freight cost increases and consumer spending pressure.
AHK Designs, which owns many other e-commerce businesses, bought Victoria Plum for several million pounds from Endless, the investment group that had owned it since 2019.
Endless put £3m of working capital into Victoria Plum to assist it throughout the auction, but suffered a big hit on the £200m acquisition price paid by US private equity company TPG in 2014.
Victoria Plum is the latest online furniture store to sell as clients reduce online buying post Covid. Made.com went into insolvency last November, and Next bought its brand, domain names, and intellectual property for £3.4m.
Victoria Plum Establishment
Jason Walker formed Victoria Plum in 2001 and sold his interest to TPG in 2014. The firm offers showers, taps, toilets, and tiles from its Hull headquarters and Doncaster warehouse.
According to its latest reports, the firm invested in technology, marketing, and customer service and saw revenues climb 46% to £103m in the year to February 2020. The COVID 19 epidemic contributed to their £9.1m pre-tax loss.
Future Plans
AHK Designs wants to continue Victoria Plum’s growth strategy and use its online commerce and digital marketing capabilities. The firm will also consider cross-selling Beds.co.uk and Cox & Cox items.
Victoria Plum CEO Paul McClenaghan said: “We are delighted to have secured the backing of AHK Designs, who share our vision for Victoria Plum’s future. This partnership will accelerate our expansion and expand our UK consumer base.”
We are thrilled to add Victoria Plum to our portfolio of online retail businesses, stated an AHK Designs spokeswoman. Victoria Plum leads the online bathroom industry with quality, service and affordability. We look forward to working with management and workers to grow the business.”
Who are the competitors of Victoria Plum in UK?
Victoria Plum’s primary competitors are Better Bathrooms, BigBathroomShop, Plumbworld and more.
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FAQs
Q: What is Victoria Plum?
A: Jason Walker started Victoria Plum in 2001 and it is one of the best online bathroom stores in the UK. The business sells bathroom items like showers, faucets, toilets, and floors, and they also do planning work and installation.
Q: Who bought Victoria Plum and why?
AHK Designs acquired Victoria Plum on Friday, October 1, 2023. AHK Designs owns Beds.co.uk and Cox & Cox, a furniture store. Victoria Plum had been having a hard time because of rising global freight costs and people’s reluctance to spend money. AHK Designs bought the company for a few million pounds.
Q: What is a pre-pack administration deal?
A: A pre-pack administration deal is a type of bankruptcy process in which a company sells its business and assets to a new owner before it officially goes into administration. This keeps work, keeps the business from going out of business, and lets it keep trading under new hands.
Q: What happened to the previous owners of Victoria Plum?
A: The previous owners of Victoria Plum were Endless, the investment firm that had owned it since 2019, and TPG, the US-based private equity firm that had owned it since 2014. Endless recently provided Victoria Plum with £3 million in working capital to support it during the auction process, but it took a sizable loss on the £200 million original purchase price that TPG had paid.
Q: How will the deal affect the customers and staff of Victoria Plum?
A: The new owners will run Victoria Plum as usual, so customers and employees won’t be affected. The transaction saved all 300 Victoria Plum jobs, and the business would fulfil all purchases, warranties, and refunds. The firm will also consider cross-selling Beds.co.uk and Cox & Cox items.