A major UK tool and maintenance supplier has fallen into administration and has been put up for sale.
Devon-based Troy (UK), which has a workforce of 75, has been put on the market by administrators in an effort to salvage it following its collapse.
The company, based at Exeter’s Skypark, links suppliers with independent businesses to sell tools and other supplies to end users. Troy supports a network of more than 450 independent members in the tooling and maintenance industry, providing access to more than 460 leading suppliers, as well as product expertise, data services, technology solutions and other business services.
Troy’s latest accounts for 2023 depict financial struggles emanating from supply chain disruptions due to the conflict in Ukraine. The company was hit by rampant inflation, rising interest rates, diminishing demand, and eroding consumer confidence – resulting in a loss of £2.746m for the financial year after a £1.083m setback in 2022.
Professional services consultancy Alvarez and Marsal hs been appointed as administrators, embarking on a sales initiative for the firm and its assets. Joint administrators Paul Berkovi and Mark Firmin have stressed that no immediate job cuts have been made and operations have been temporarily halted as they review the firm’s prospects and pursue a “an accelerated sales process”.
The joint administrators are calling on interested parties to come forward and register their interest in purchasing the business and assets, with the aim of completing a sale as quickly as possible. Mr Berkovi said: “Troy is a trusted national business providing a key strategic service to the engineering and industrial tools market”, reports Devon Live.
“As joint administrators, our priority is to run a sale process at pace, and we encourage any interested parties to contact us as soon as possible to discuss the opportunity to acquire the business.”
Established in 1986, Troy UK operates by leveraging its collective buying power to offer discounts to its members on a wide range of products from over 400 suppliers, including cutting and precision engineering tools, hand and power tools, and personal protective equipment.
The group also provides its members with access to specialist support and bespoke services, enabling them to compete with larger tool retailers while maintaining their independence and high levels of customer service. Troy UK’s expansion has been fuelled by a combination of acquisitions, including the 2017 purchase of THS Group, and organic growth through attracting new members and aiding their development.
This strategy has led to increased sales. In 2021, the company unveiled a five-year plan aiming for revenues to reach £500m.
Troy reported revenues of £231.344m in 2023 and secured a £15.5m investment from venture capitalist BGF, formerly known as the Business Growth Fund, which acquired a minority stake in the group.
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