Interpath secures CTD Tiles sale to Topps Group

Interpath Advisory has secured the £9m sale of tile wholesaler and retailer CTD Tiles to Topps Group. The deal included the acquisition of 30 stores, the operation of its distribution hubs in Leeds and Kings Norton, and all related intellectual property and stock, as well as the CTD brands.

CTD Tiles was a major supplier of tiles for the UK trade and consumer markets and operated out of 86 store locations. However, it faced financial challenges relating to its cashflow in recent months, which led to an accelerated M&A process to secure fresh investment.

James Lumb and Will Wright were appointed as joint administrators from Interpath on 19 August and immediately secured the sale of certain business and assets to Topps Group.

Topps Group is the UK’s largest specialist supplier of tiles and associated products with more than 300 stores across the UK. As part of the transaction, 92 staff will transfer to Topps. The acquired stores will continue to trade under the CTD Tiles brand

Interpath said it will retain 65 staff as part of the transitional services agreement to help with the delivery of the administration. The remainder of the company’s staff have been made redundant, however, and the remaining 56 branches have closed.

James Lumb, managing director at Interpath Advisory, said: “CTD Tiles is a major player in the industry, but market conditions proved insurmountable as consumer and trade demand failed to recover in line with expectations. The transaction with Topps Group provides continuity for a considerable number of staff and stores as part of a major tiles group. We are working with the team to ensure a smooth transition for customers and suppliers.

“Regrettably, the remaining sites have closed, which has resulted in redundancies. We are now focused on supporting those staff and have specialist teams on site working with impacted employees to help make representations to the Redundancy Payments Service where relevant.”

Rob Parker, Topps Group CEO said: “The CTD brand and assets are an excellent fit with our existing business and the Acquisition creates a new and complementary specialist tile business within the Topps Group.

“CTD operates a different model to our existing Topps Tiles retail stores, with separate trade and retail offers within each unit and a number of market-specific sub-brands which are differentiated from our existing offer. The acquisition of 30 high quality stores and selected supporting infrastructure, together with the intellectual property and customer data required to service CTD’s existing commercial customers in the housebuilding and A&D markets, provide us with an opportunity to make material progress towards our Mission 365 sales goal.