A huge family firm honoured by the king has collapsed into administration after 53 years in business.
The nearly 150 jobs and Axminster Tools’ remaining stores, however, have been saved after the retail and manufacturing parts of the business were sold into newly set up companies run by some of the same directors. The administrators, who have now written to the creditors, said the sale, for “the highest level of consideration”, was the best way for the “key” south west business to survive, Devon Live reported.
In 2023 and 2024, the company shut stores in Basingstoke, Nuneaton, Newcastle, and Warrington, and made more than 60 redundancies. Last year’s accounts showed turnover fell by more than £5m and Axminster Tool Centre Ltd made a £2.23m pre-tax loss. The company’s fall into administration was announced this week, the newspaper also reported.
On appointment, administrators immediately sold the retail business, including its stores and wholesale operation, to Newhow Ltd, and its manufacturing plant to NuCo Tools Ltd, both incorporated in September.
Newhow is controlled by Alan Styles, the managing director of Axminster Tool Centre Ltd, and Timothy Styles. Nuco Tools Ltd is controlled by Hayley Jones and Ian Styles, both directors of Axminster Tool Centre Ltd.
Richard Lewis and Alistair Wardell, of Grant Thornton UK Advisory and Tax LLP, were appointed as joint administrators of Axminster Tool Centre Ltd on October 21. Mr Lewis today told Devon Live: “The administration followed a sustained period of financial pressure. While the business experienced growth in turnover and profitability during the Covid-19 pandemic, the subsequent contraction of the DIY market and the company’s challenges in adapting its strategic direction to evolving market conditions, led to losses in 2023 and 2024 and ultimately the company’s insolvency.”
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Devon Live also added that Mr Lewis said that in the six to eight weeks prior to the appointment, Grant Thornton had undertaken an accelerated sale process that culminated in the sale on the joint administrators’ appointment of the company’s retail business, including its stores and wholesale distribution operation, to Newhow Ltd and its manufacturing facility to NuCo Tools Ltd.
He also added: “Whilst the marketing exercise was as extensive as possible in the time available, the new companies, which were incorporated by different parts of the company’s director and shareholder group, offered the highest level of consideration. As part of the transactions, all of the company’s 149 employees were transferred to the purchasers and the sales provide the best opportunity for a key South West business to continue in operation with minimal disruption to customers.”
