British homeware firm closes huge factory after 123 years – putting over 100 jobs at risk

A BRITISH homeware firm has closed a huge factory after 123 years of operation.

Johnson Tiles is set to shut its Stoke-on-Trent factory which will lead to the loss of more than 100 jobs.

Johnson Tiles

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The shock closure follows the announcement of a management buyout deal with parent company Norcros.

It marks the end of a century of history after the company was set up in Stoke-on-Trent in 1901.

They focused on manufacturing and supplying high-quality ceramic and porcelain tiles.

Johnson Tiles is not stopping business altogether but will instead move forward a standalone business with all production outsourced.

Full details have not yet been disclosed but a consultation with 105 workers at the Tunstall plant in Harewood Street is now underway.

In its accounts for the year to March 31 2023, the firm reported revenues of £35.3 million, which represented 8 per cent of Norcros group revenue, and operating profits of £500,000.

However, Norcros said that the company had “absorbed cash in each of the last three years”.

In October of last year, faced with falling UK demand for tiles, Johnson Tiles’ manufacturing capacity was reduced by 50 per cent.

Now, following a strategic review, the group has entered into an agreement to sell the company to its existing management team.

The company had initially been acquired by Norcros in 1971, becoming one of its core brands.

The UK management team – made up of managing director Stephen Dixon, commercial director Rich Kelsall and procurement director Jason Bridges – will assume full control from the end of May subject to legal protocol.

In a statement released today Johnson Tiles said the deal had the “full support of both parties, offering the best way to protect the long-term success of the British heritage brand through challenging market conditions and the next stage of growth”.

Mr Dixon said: ”We are, of course, making this announcement with very mixed feelings, acutely aware of what this means for our colleagues and what it says about UK manufacturing as a whole.

“It is with a heavy heart that we are looking to stop production at the Stoke plant but the cost of making tiles in this country – despite ongoing investment – has become increasingly unsustainable.”

Thomas Willcocks, CEO of Johnson Tiles’ parent firm Norcros plc, said: “We are pleased for Stephen and the management team and believe this agreement is in the best interests of staff, customers and shareholders of both Johnson Tiles and Norcros.

“We are committed to supporting the business as it makes this transition and look forward to partnering on opportunities in the bathroom and kitchen markets.”

What else is happening to homeware chains?

It comes as shoppers have been cutting back on spending following the pandemic.

Plus the recent turmoil in the housing market has meant that homeowners aren’t as focused on DIY projects as they once were.

Most recently, Kingfisher, which owns both B&Q and Screwfix, revealed annual profits slumped by more than a quarter.

Rival Wickes, also reported a 31 per cent fall in profits to £52million on flat revenues of £1.55billion for 2023.

Elsewhere, Homebase could be put up for sale after discussions were reportedly held with potential buyers, including big-name discounters.

It would be the second time the chain has been put up for sale in four years.

Windows and doors company Safestyle has collapsed into administration in October last year.

Retailers closing stores in 2024

RETAILERS have been feeling the squeeze since the pandemic, while shoppers are cutting back on spending due to the soaring cost of living crisis.

High energy costs and a move to shopping online are also taking a toll, and many high street shops have struggled to keep going.

Here’s a list of all the big-name brands closing stores this year:

• Argos – The brand announced plans to close 100 standalone UK branches last year as it looks to move away from the high street and focus on expanding its presence in supermarkets.
• B&Q – The chain has over 300 shops across the UK, so chances are you have one near you, but some stores have closed in recent months.
• Boots – The health and beauty chain announced that it would be closing 300 stores last July. Closures are ongoing and this will see the retailer’s estate reduced from 2,200 to 1,900 shops.
• Clintons – Clintons mulled plans to close 38 shops in a bid to avoid insolvency late last year. We’ve listed the stores affected.
• Costa Coffee – The caffeine giant has around 2,000 sites nationwide, so chances are you’ll have one near you. The chain has shut the doors to dozens of its sites recently. We’ve revealed which stores are due to close this year.
• Iceland – The supermarket has more than 900 stores but closed nearly two dozen sites in 2023, and more selected shops are due to shut.
• Lidl – The supermarket, which has 950 stores, is changing up shop locations, which has meant that some stores have to close. But the retailer is also looking to open 12 new supermarkets.
• M&S – M&S, which runs 405 stores across the country, has been closing a string of branches across the country in a blow for shoppers. It’s not all bad news, though, because the chain also has big plans to open dozens of new shops as well.
• Trespass – The firm announced in July last year that it was closing six branches, but more are on the way.
• WHSmith – The retail giant, which runs over 1,100 stores, has shuttered eight stores since March 2023, but more are coming.

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