London builders merchant sinks into administration

A London timber and builders merchant which has been in business for more than 50 years has gone into administration after being felled by rising costs and falling margins.

Hitchcock & King had six sites in the capital with a head office in Fulham as well as branches at Ashford, Burgh Heath, Hammersmith, Streatham and Twickenham.

But administrators from Interpath Advisory were appointed earlier today after rescue efforts failed with 27 staff immediately made redundant.

Interpath said a further 37 people were being kept on for a short period to help the firm keep trading while the remaining stock was shifted for its stores.

Steve Absolom, managing director at Interpath Advisory and joint administrator, said: “Whilst Hitchcock & King will remain open for business in the short term to clear through the stocks of building supplies, there’s no doubt that this is an extremely sad day for this long-running family business and its team of hard-working, loyal employees.”

Interpath added: “In common with many other companies across the building and construction industry, the company had faced difficult trading conditions in recent times, including the impact of rising costs and decreasing margins.

“Over recent months, the directors sought to explore options, including a sale of the business, but a solvent solution was unable to be found.

In its last set of accounts for the year to March 2023, Hitchcock & King said turnover was hit by “weak demand for building materials in the RMI market” while interest rate rises and falling house prices also hit demand.

Revenue during the period fell 17% to £13.3m with the firm slumping to a £1.3m pre-tax loss from a £1.1m profit the year before.