The Independent Builders Merchant Group (IBMG) has announced a financial and operational restructuring plan across the business.
IBMG, a giant in terms of independent builders merchanting, has outlined the launch of operational restructuring across 13 of its merchant companies. The aim, it says, is to strengthen operations, facilitate new funding, and position the business for future growth.
The Group has 180 branches and more than 2,100 staff and posted an annual turnover of around £650m in 2023 – its most recent published accounts – but the Group’s pre-tax losses for that period (year ended December 31, 2023 ) increased from £40.9m to £79.2m, reflecting the increase in the Group’s cost base and increased interest costs due to the increase in UK base rates and the Group writing off capitalised borrowing costs following the refinance of the Group’s loan facilities in December, 2023.
IBMG owner Cairngorm Capital Partners raised additional capital investment from investment firms Ares Management Corporation and Farallon Capital Europe LLP in 2024.
IBMG confirmed the launch of 13 inter-conditional Restructuring Plans, 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,” it said in a statement.
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. 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.
IBMG believes the restructuring will provide the strong financial platform required to build a resilient and thriving future for the business.
The companies subject to the restructuring plans are:
• Chandlers Building Supplies Holdings Limited
• Chandlers Building Supplies Limited
• CRS Building Supplies Limited
• Devondale Electrical Distributors Limited
• Dougfield Plumbers Supplies Limited
• Fairalls (Builders Merchants) Limited
• Grant & Stone Limited
• Parker Building Supplies Limited
• Pennyhill Timber Ltd
• Rawle Gammon & Baker Holdings Limited
• Sussex Plumbing Supplies Limited
• Sussex Turnery & Moulding Company Limited
• Total Plumbing Supplies Limited
