CTD Tiles filed a notice of intention to appoint administrators on Monday, as advisers scrambled to find a bidder.
According to sources, Interpath Advisory is overseeing a sale process that may result in a pre-pack administration later this month.
On Monday, it was unknown who the prospective purchasers were.
CTD, which was acquired by former Body Shop owner Aurelius in 2022, provides ceramic tiles to both commercial and residential customers.
Based in Newcastle, it has 87 locations and employs over 400 people.
Insiders claimed CTD’s revenues were projected to fall by approximately 30% this year, from £113 million in 2023, reflecting the industry-wide decrease.
CTD’s clientele consists primarily of large housebuilders, many of which have been buffeted by macroeconomic headwinds even as the incoming Labour administration promises to kickstart a housebuilding boom across the country.
Other tile industry players, such as Tile Giant, Tile Choice, and Johnson Tiles, have faced financial and trading challenges.
According to one source, CTD was able to endure the constraints it faced for longer than competitors because its owner offered additional financial support to address liquidity shortfalls.
