Optiplan Kitchens, the 13-strong chain of kitchen showrooms, has announced its intention to appoint administrators, sending all staff home and locking the doors with immediate effect.
The owner, Home Decor GB Ltd, has blamed lockdowns, post-covid supply chain issues and rising costs for the decision. Industry speculation has been swirling about the viability of the company for some time.
In a statement to staff, Jason Limbert, Home Decor GB CEO, said that he felt ‘great sadness’ in the decision but Optiplan had faced ‘numerous challenges’ since the outbreak of Covid-19.
“[This started with] the complete cessation of its operations, followed by prolonged periods of showroom closures due to changing Covid restrictions,” he said. “Post Covid challenges in the supply chain have resulted in severe business disruption alongside rapidly escalating costs that the business has struggled to pass on to its customers quickly enough.”
Limbert said that the business was restructured in April this year to try and get the spiralling costs under control, however utility and material prices continued to rise and quickly eroded any benefits.
“Given the ongoing economic challenges with seemingly no end in sight to the high levels of ongoing inflation, we have reached the conclusion that there is no viable alternative to this action,” he said.
Limbert confirmed to kbbreview that this only affects Optiplan and Home Decor Group GB continues to trade profitably. The Group bought Optiplan in June 2016 (https://www.kbbreview.com/3684/news/home-decor-acquires-optiplan-and-manor/).
The sudden closure of Optiplan is a massive blow to employees of course, but it also means major concerns for those customers who have kitchens outstanding – many of which are halfway through an install as well as those who have paid a deposit. Suppliers, who are now creditors, have already received letters informing them of the move.
The administrator is Kroll and anyone with queries should email [email protected]