Following a Sky News report, the kitchens & bathrooms trade is alive with speculation that Victoria Plum owner TPG is engaged in talks with Bathstore’s American parent company, Stephens Inc., about a possible merger or an outright sale of Victoria Plum. Victoria Plum generated sales of £63 million for the year to February 28th from its principally online operation, generating a profit of £200,000. The business had made a loss of £5.7 million in the previous year and, like many in the home improvements sector, is finding it tougher against a backdrop of the sluggish housing market, Brexit uncertainty, and consumers delaying spending significant sums on updating their homes.
As widely reported B&Q, Homebase, Wickes and others are also seeing demand for higher ticket products falling. If the suggested merger goes ahead the combined business would benefit from the 150 UK Bathstore branch presence combined with the superior online capabilities of Victoria Plum, however, it would likely result in job losses.
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