Victorian Plumbing Group PLC (AIM:VIC) shares rose 3% today after it confirmed it was axing the rival retailer it purchased three months ago.
Hundreds of jobs have been put at risk after the bathroom retailer pulled the plug on Victoria Plum.
In May, Victorian Plumbing purchased its rival for £22.5 million, six months after it plunged into administration, calling the deal “an exciting strategic milestone”.
Initially, the London-listed firm said it would undergo a cost-cutting programme, with the hope of keeping both companies trading as separate entities.
“We have entered into a consultation period with a number of VictoriaPlum.com colleagues and only when the period completes can we provide an update,” said a spokesperson for the retailer.
“We are committed to keeping all employees, suppliers and connected parties up to date as we progress with the consultation.”
Victoria Plum and Victorian Plumbing had met in court over a trademark dispute in 2016, with both found to have paid to advertise infringing text in online search engine results.
Each had been set up separately, with issues arising over the two bidding for domain names featuring the other’s title.