Dundee’s CTD branch is to close after the company plunged into insolvency.
Perth’s store will open as a Topps Tiles after an agreement was reached between the company and administrators for CTD.
The company, which ran 86 stores across the UK and employed 425 staff, fell into insolvency on Monday after coming under pressure from a downturn in the home improvement sector.
Administrators from Interpath Advisory said competitor Topps had struck a deal to buy CTD’s brands, intellectual property, stock, 30 stores and operation of distribution sites for around £9 million.
The Dundee store on Clepington Road is now shut. Another 56 shops across the UK, with 268 workers, have also closed, with staff being made redundant immediately.
Perth CTD warehouse to remain open
CTD Tiles in Perth is located within Jewson on Arran Road. The company also has an outlet in Springkerse Industrial Estate in Stirling, which is also closing.
James Lumb, managing director at Interpath Advisory and joint administrator of CTD Tiles, said tough market conditions proved “insurmountable” for the supplier in recent months “as consumer and trade demand failed to recover in line with expectations”.
He added: “The transaction with Topps Group provides continuity for a considerable number of staff and stores as part of a major tiles group.
“Regrettably, the remaining sites have closed, which has resulted in redundancies.
“We are now focused on supporting those staff and have specialist teams on site working with impacted employees to help make representations to the Redundancy Payments Service where relevant.”
Rob Parker, Topps Group chief executive, said: “The CTD brand and assets are an excellent fit with our existing business and the acquisition creates a new and complementary specialist tile business within the Topps Group.
“CTD operates a different model to our existing Topps Tiles retail stores, with separate trade and retail offers within each unit and a number of market-specific sub-brands which are differentiated from our existing offer.”
It is understood that 92 workers will transfer to Topps Tiles.
Administrators will also keep on a further 65 people to deal with the transition of the administration process.
CTD ran sites across the UK with trade and retail showrooms and recorded roughly £75 million in revenues for the past year.
Conversation