As we have been saying on UK Whitegoods for some weeks, if not months, it would appear that with the slowdown (or dead stop) in the housing market that many kitchen, bedroom and bathroom (KBB) businesses that companies that major in that arena are dropping like the proverbial flies. News keeps reaching us of just absolute doom and gloom from this area of the whitegoods market and, there’s no sign of any letup anytime soon.
The latest casualties to feel the current economic climate’s draught would appear to include Rangemaster but, once again, rumours are starting to circulate about the future of Teka, Waterline and others.
One of the indicators would be that B&Q have decided to call a halt to their Trade Depot stores which are now to close after a review by CEO Euan Sutherland of Kingfisher’s UK trade business apparently identified several opportunities for joint development of B&Q and Screwfix and resources will be focused where it will achieve higher and faster returns.
As a result, resources will instead be concentrated on developing B&Q and Screwfix in the trade market.
Meanwhile as we reported a few days ago, Bernstien has once again gone into administration and, we’re told, this is partly something to do with B&Q on top of the general slowdown in demand.
A spokeswoman for Price Waterhouse Cooper said that ‘The business (Bernstein) has suffered significant losses as a result of the severe housing and retail downturn in the UK and the slowdown in consumer spending on home improvements.’
“Additionally”, she added, “a trade kitchen supplier, which was a major customer, announced its closure, which has had a significant impact on the viability of the company.
“Regrettably, it may not be not possible to continue the operations and fulfil outstanding contracts without significant additional funding.
“Accordingly, 140 employees have been made redundant with immediate effect. The administrators intend to complete existing orders on hand.”
But it doesn’t stop there.
Rumours are flying at the moment within the industry with some expected and, some very surprising, names being put forward as being “in trouble”. We have to stress that these are unconfirmed rumours and that, as yet, there is no confirmation of they stories that the likes of Teka and Waterline are in financial difficulties.
It wouldn’t come as a shock however as, so far as the KBB arena goes, it may as well be that Armageddon has arrived.