Alvarez & Marsal has announced significant changes within the National Timber Group, resulting in the closure of 13 branches across England and Scotland. This decision also involves mothballing several production facilities as part of efforts to stabilize the business.
Impact on Employment
The recent moves by the administrators have led to the loss of over 560 jobs. At present, the National Timber Group employs around 1,150 individuals across its 47 locations.
Ongoing Operations and Sale Process
Despite the closures, the remaining depots continue to operate. The administrators are racing against time to find a buyer for the business, which has a reported turnover of £300 million. There are mounting concerns regarding potential supply chain disruptions, especially as winter approaches.
Background of the National Timber Group
Founded in 1920 in Sheffield, the National Timber Group initially grew around the Arnold Laver brand. Over the years, it expanded by acquiring companies such as Thornbridge, NYTimber, and Rembrand Timber. However, prolonged weak trading conditions and cash flow challenges ultimately led to the current crisis.
Future Prospects
Michael Magnay, a partner at Alvarez & Marsal, commented, “National Timber Group is the UK’s leading timber supplier to joiners, housebuilders, and contractors, operating under several well-known brands.” The firm has initiated an accelerated sale process, appealing for interested parties to come forward.
- Closure of 13 branches in England and Scotland
- Mothballing of several production facilities
- Loss of over 560 jobs
- Business turnover of £300 million
- Founded in 1920 in Sheffield
As the situation develops, stakeholders are hopeful for a resolution that could see the sale of all or parts of the National Timber Group. The administrators have noted a positive level of interest so far.
