Administrators have been called in for Folkestone Fixings Limited (FFX).
FFX was a tools and hardware retailer based in the south-east of England that traded from two stores in Ashford and Folkestone, and from its own website.The company had been acquired by H2 Equity Partners, an investment firm, in 2021.
PWC, which has been appointed as administrators stated that: "the company’s financial position upon appointment means that it is no longer able to continue trading and as a result all stores and the website will cease to trade immediately."
The URL of the company's website redirects to that of ITS, which, as per a banner at the top of the page, has acquired the domain name.
The administrators have retained a small number of employees at the company's head office in Kent for a short time to support in winding down operations, but 140 employees have reportedly been made redundant.
Accounts for the year ending 30 September 2023 report “significant challenges in the business environment”. While revenue had increased from £79.5 million in 2020 to £98.5 million in 2022, and £96.8 million in 2023, margins had been significantly shrinking - something the company blames on an "increasingly competitive landscape combined with the slowdown in construction output".
FFX responded with the developpment of its an own-brand range of products, the launch of a new website in December 2023, while expanding its drop-shop proposition.
However, the company's accounts for last year record an adjusted EBITDA of £1,488,958 - a drop of 60.3% on the previous year.
The administrators at PWC have calculated the total amount owing to creditors to be £33 million. In order of priority of payment, this includes £2 million to staff, £1 million to HMRC, £13 million to secured creditors and £17 million to unsecured creditors. However, the total estimated realisable value of company assets is only £9 million, which means that many creditors will not receive what they are owed.