Burden plans more depot sales
Published: 08 November, 2012
Kevin Hancock, marketing director at WT Burden, told Contract News: “We are in the middle of reviewing the options with the remaining depots, and that might result in a sale, a number of sales or some reorganisation.
Wolseley was one of six buyers that registered an interest after Burden went to the market two months ago. WT Burden turned over £342m in 2011 from 50 depots but sought a sale to secure the long-term future of the business. It also operates in Ireland, Australia and the Middle East.
WT Burden has posted a notice of intent to appoint an administrator to the courts in order to protect itself from creditors. WT Burden reported £4.5m pre-tax profit last year with £122m assets and £4m working capital. Mr Hancock said the main pressures on the company have come from the credit insurance industry, which he said has been tough on suppliers in particular. But he said the company has support of its funders, having undergone an £80m refinancing at the start of the year.
WT Burden is owned by family and charitable trusts, alongside an employee-ownership structure.