Independent Builders Merchant Group has outlined its “decision to initiate a financial and operational restructuring which aims to strengthen operations, facilitate new funding, and position the business for future growth.”
Currently, the initiative is subject to due process, with a statement released by the business explaining: “IBMG confirms the launch of 13 inter-conditional Restructuring Plans¹ under Part 26A of the Companies Act 2006, which seek to recapitalise the Group, compromising certain liabilities — including various leases across the Group’s branch network — alongside a significant reduction in bank indebtedness.
“As part of the restructuring and contingent on the court approval of the Plans, there will be an orderly, consensual change of control between the current shareholders and the Group’s Senior Lenders.”
The statement continued: “Details of the Plans have been circulated to all Plan Creditors, with a proposed convening hearing scheduled for 10 June 2025. Over the coming days and weeks, the Group will continue to engage with its key stakeholders to outline the steps needed to secure a stronger financial position for the business.
“In the meantime, IBMG remains focused on maintaining business as usual throughout this period, with no anticipated disruption to day-to-day operations. The Group firmly believes this transformational restructuring will provide the strong financial platform required to build a resilient and thriving future for the business.”
Described on the company’s website as “the UK’s leading integrated group of independent local merchants,” IBMG was established through investment from private equity firm, Cairngorm Capital with more than 20 acquisitions made since the start of 2018 to bring together well-known industry brands including Grant & Stone, Parker Building Supplies, RGB and Chandlers Building Supplies.
“The Group firmly believes this transformational restructuring will provide the strong financial platform required to build a resilient and thriving future for the business.”
IBMG Statement
As per the information recorded in PBM’s annual ‘Top 20’ merchant listing this year, the business has a turnover of £605m (2023: £650m) from a network of 177 branches. Last year, new capital investment was introduced from funds managed or advised by leading investment firms Ares Management Corporation and Farallon Capital Europe LLP with IBMG CEO Martin Stables commenting at the time: “The new funding partnership delivers additional capital for growth, providing IBMG with greater financial flexibility, allowing for continued investment.”
In March, as reported by Sky News, speculation mounted that Ares and Farallon were looking to “take ownership of the business” from Cairngorm Capital, “implemented through a restructuring of the company’s debt, rather than any form of insolvency event.”
An IBMG spokesman revealed that the operational elements of the restructuring are expected to involve a reduction in overall branch numbers by around 10%, focusing on smaller sites, with the recent closure of the RGB depot in Plymouth seemingly an early example of the measures. However, it has been stressed that this will not mean losing 10% of the firm’s employees, with staff potentially being redeployed to other locations in some circumstances (all bar two employees were said to have relocated from the Plymouth branch, for example).
It is anticipated that the legal aspects of the process pertaining to the ownership of the business will be completed by the end of July. Currently, there are said to be no plans to change IMBG’s divisional operating structure or the individual brands within the Group.
¹The Companies subject to the Restructuring Plans are as follows:
Chandlers Building Supplies Holdings Limited
Chandlers Building Supplies Limited
CRS Building Supplies Limited
Devondale Electrical Distributors Limited
Dougfield Plumbers Supplies Limited
Fairalls (Builders Merchants) Limited
Grant & Stone Limited
Parker Building Supplies Limited
Pennyhill Timber Ltd
Rawle Gammon & Baker Holdings Limited
Sussex Plumbing Supplies Limited
Sussex Turnery & Moulding Company Limited
Total Plumbing Supplies Limited
