Victorian Plumbing Group PLC (AIM:VIC) said it will close rival Victorian Plum having acquired the business from its administrator in July after a prolonged legal battle over the use of the name.
In a statement, Victorian Plumbing said it had finalised consultations with Victoria Plum's workforce with the closure of the Doncaster-based business expected to be completed by the end of December.
Since it was acquired, Plum contributed £15 million of revenue and incurred an underlying [adjusted EBITDA] loss of £2 million.
Victorian Plumbing reported sales in the year to the end of September 2024 rose by 4% in total but were down 1% excluding Plum.
Volumes rose by 10% but a move to own brand products meant the value of orders fell by 5%, though the flipside was an increase in gross margins to 50% from 47%.
A new semi-automated distribution centre at Leyland is now running, it added, and half of all orders originate from the site.
Mark Radcliffe (pictured), Victorian Plumbing's chief executive, said: "We have increased profitability, as our higher margin own brand proposition continues to resonate with customers and consolidated our leading position as the UK's number one bathroom retailer.
"Our state-of-the-art new distribution centre is now operational and will remove previous capacity constraints.
“Moreover, the recent decision to close Victoria Plum provides the Group with a significant opportunity to accelerate growth and continue to further the investment in our brand and marketing."
Shares rose 2% to 109p.