Otford Builders Merchants to close

Independent builders merchant Otford Builders Merchants will cease trading later this year following a prolonged period of challenging market conditions. The closure will result in the loss of 34 jobs.

The company has confirmed there will be an orderly wind-down of operations over the coming months, and that it remains fully solvent. The decision follows three consecutive years of financial losses and an assessment that current trading conditions make a return to sustainable profitability unlikely in the foreseeable future.

The company, which nestles in the pictureseque Kentish village of Otford, was founded by John Sparrow in 1971 to support his property development activities.  However, the company says that rising operating costs and the sustained slowdown in construction activity have significantly affected the economics of the business in recent years. Increasing interest rates, regulatory costs, energy prices, employment expenses and business rate increases have all contributed to a prolonged deterioration in profitability across the sector.

A spokesperson for OBM said: “This is an incredibly difficult decision for everyone connected with the business. We have explored every available option to restore profitability and secure the long-term future of the company. Unfortunately, despite the commitment of our management team and employees, current market conditions have made it impossible to achieve a sustainable return to profitability. We would like to express our sincere gratitude to the generations of employees whose hard work built the business, to our loyal customers who placed their trust in us, and to the suppliers and partners who supported us throughout our journey. Their loyalty and commitment have been fundamental to OBM’s success and enduring reputation.”

OBM will continue to trade during the wind-down period and will work closely with customers, suppliers and employees and its advisors including financial and real estate advisory group BTG to ensure an orderly conclusion to its operations.

Lee De’ath, Partner at BTG, said: “After experiencing a number of years of difficult trading, OBM approached BTG for advice on its options and being that the business remains fully solvent, an orderly wind-down of operations over the coming months has been decided upon as the best course of action. This allows for a controlled process that will ensure all of the team members being made redundant are able to receive everything they are entitled to, and customers and suppliers can prepare, ahead of the merchant’s eventual closure. After this is complete, we will work with the directors to discern the next course of action.”