A giant UK flooring company, in business for more than 60 years, has collapsed into administration. Domus Tiles Limited, which has worked on some massive projects including Wembley Stadium and Battersea Power Station, fell into administration earlier this week. The company was founded in 1964 and supplies premium tiles and flooring to interior designers, architects and corporate customers.
It operates six showrooms across the UK in Battersea, Clerkenwell, Birmingham, Glasgow, Manchester and West Molesey. However, the business has already been rescued in a deal which has saved all 112 jobs at the company.
Chris Pole and Will Wright of Interpath were appointed as joint administrators of Domus Tiles Limited on October 27. Immediately after their appointment, the company’s business and assets were sold to Domus Group London Limited in a pre-pack deal.
The new company is owned and led by Domus’s existing management team, meaning the Domus business will continue trading. All 112 employees have also transferred to the new owner.
Domus has been involved in a number of huge projects over the years, including Heathrow Airport Terminals 2 and 5 and the US Embassy in London, as well as Wembley Stadium and Battersea Power Station.
The business has already been rescued in a deal which has saved all 112 jobs at the company (Image: Domus)
The company was incorporated on July 13, 1964, under its previous name Domus (Italian Tiles and Decor Centre) Limited.
It later became part of Headlam Group, one of Britain’s biggest flooring distributors. Domus was one of Headlam’s wholly-owned subsidiaries before its administration.
Headlam itself entered administration in September, with administrators exploring a number of options for the group and its businesses.
Interpath initially continued trading the wider business while considering possible restructuring options, including whether it could exit administration through a Company Voluntary Arrangement.
However, administrators later said a sale of certain parts of the business and its assets represented the best and most deliverable outcome for creditors.
Options continued to be explored for Domus before the company entered administration and its business was immediately sold to the management-owned company.
The new owner, Domus Group London Limited, was only incorporated on October 1.
Companies House records show Jonathan Newey, Anthony Wrinch and Erik Castenskiold each have significant control of the new business.
Domus Tiles Limited’s administration is being handled by Mr Pole and Mr Wright of Interpath.
The administration was filed in the High Court of Justice Business and Property Division Insolvency and Companies List in Manchester.
Despite the administration of the old company, the sale means Domus’s business can continue operating under its existing management.
The sale of Domus came alongside a separate pre-pack deal involving another Headlam subsidiary, Melrose Interiors Limited.
Melrose, which is based in Bradford and specialises in rugs and other flooring products, was sold to the Jain family group of UK distribution companies.
A total of 35 Melrose employees transferred as part of that transaction. However, Melrose’s Spectrum business unit was not included in the deal, resulting in 19 redundancies.
Combined with the 112 jobs protected at Domus, the two deals secured 147 jobs.