The Group's transformational move will provide the strong financial platform required to build a resilient and thriving future for the business.
Independent Builders Merchant Group, the largest building materials distributor in the South of England, is to initiate a financial and operational restructuring which aims to strengthen operations, facilitate new funding, and position the business for future growth. This was first hinted at earlier this year.
As part of this, IBMG has confirmed the launch of 13 inter-conditional Restructuring Plans 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.
Importantly, the Group’s trade suppliers remain unaffected and will not be compromised by the Plans. Sixty of the Group’s supplier partners have already been contacted directly and, according to an IBMG spokesperson “the feedback and sentiment was very positive".
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.
The IBMG spokesperson said that about ten per cent of the Group is likely to affected by the changes, but this will consist of the smaller locations among its total of 178 branches.
“It will be low figures in terms of people and turnover in terms of impact,” the spokesperson added. “The Group has been managing staff numbers since the start of the year and there will also be natural wastage across the business.”
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.
Details of the Plans have been circulated to all Plan Creditors, with a proposed convening hearing scheduled for 10 June 2025.
The restructuring is expected to completed by the end of July.
Since its creation in 2018, the group has made 20 acquisitions, bringing together Chandlers, Grant & Stone, Parker, and RGB, among several others. It currently employes over 2,200 people in 177 branches, with revenues of £650 million, according to its website. The activities of the group encompass several divisions, such as roofing, timber, plumbing and heating, and distribution.
