KBB distributor Waterline has now entered administration, following weeks of speculation around the future of the company, with sister company Crown Imperial still running and continuing to supply retailers with products directly.
Multiple Waterline staff members confirmed that the company entered administration today, with the business now having ceased trading. It is not currently known who the administrator is.
Meanwhile, earlier this week, kitchen brand Crown Imperial confirmed it would no longer be using its exclusive distributor and sister company, Waterline, but will apparently continue to supply retailers with products directly.
These developments follow weeks of speculation about the future of both companies, after retailers were told by Waterline staff that Crown had ceased operations on September 4 – a claim refuted by Crown managing director, Barry Head – and Waterline said it was in promising talks with an investor to secure its business future.
However, in a memo sent to retailers this week – which has been seen by kbbreview – Crown confirmed that Waterline’s investor discussions had broken down, saying: “Crown Imperial would like to announce that its distribution partner Waterline have advised recent discussions with a third party have unfortunately not progressed.”
As a result, Crown says it has transferred all of its order and supply operations to Crown’s factory team in Herne Bay, Kent. According to Crown, furniture orders should continue to be placed with its trade online ordering portal.
The memo also thanked retailers for their continued business and support over the last few weeks, explaining: “We would like to thank you personally for your understanding and support during the unprecedented challenges we have experienced recently. Our customers remain at the heart of our business, and we are committed to delivering the highest levels of service.”
Waterline originally said it was in “late-stage, exclusive discussions” with a third-party investor on September 11. On September 26, Waterline lodged a notice of intention to appoint administrators – a formal legal filing that signals a company’s plan to enter administration while giving it temporary protection from creditor action while a rescue or restructuring is considered.
Kbbreview has approached Crown and Waterline for comment.