Irish deal saves Tiles R Us

THE largest tile retailer in Ireland has come to the rescue of the Tiles R Us chain, which collapsed into administration last month with debts of £15 million (€21 million).

Right Price Tiles have 16 stores in Ireland with an annual turnover of €30m.

Railway Tile Store clinched a deal to purchase F&R Dunlop Services, the operator of 60 stores around the UK, in a move that safeguards 319 jobs.

It comes a month after administrator PricewaterhouseCoopers (PwC) was handed control of Tiles R Us, which is believed to have been suffering from mounting losses and rising rents.

PwC closed 30 stores on December 6 and made 131 staff redundant as it worked on a refinancing plan that could enable the business to survive. It is understood the plan involved offering creditors 20p for every £1 they were owned.

Rob Lewis, PwC joint administrator, said a number of parties had subsequently shown an interest in Tiles R Us and it became apparent a sale would benefit creditors more.

He said: “We have been able to secure a value for creditors that will provide an outcome in excess of our original proposals and over a much shorter timeframe, which is an excellent result.”

Tiles R Us is based in Bridgend, south Wales and sells tiles, kitchens and bathrooms from stores around Britain.

Yesterday’s deal brings Railway Tile Store, which trades as Right Price Tiles, across the Irish Sea for the first time.