Toolstream, a leading DIY tool distributor based in Yeovil, Somerset, has entered administration, resulting in the loss of 111 jobs. The company, located on Yeovil’s Lufton Trading Estate, cited the global supply chain crisis triggered by Covid-19 as a key factor in its financial difficulties.
A statement on Toolstream’s website confirmed that both Toolstream and its parent company, Group Silverline Limited, are now under the management of administrators Hywel Phillips and Gavin Park from Teneo Financial Advisory. Employees were recently instructed to stay home pending further updates, according to Builders’ Merchants News.
Founded in 2009, Toolstream grew to become one of Europe’s leading distributors of hand tools, power tools, and workwear. Operating from its headquarters on Boundary Way, Yeovil, the company held exclusive distribution rights for thousands of high-quality products and serviced both independent retailers and major national chains internationally.
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The administrators revealed that ongoing trading challenges caused by widespread Covid-19 disruptions have led to insufficient inventory and declining profitability. Despite attempts to secure new funding supported by stakeholders, the business was unable to continue trading solvently.
While the company’s operations are currently suspended, a small number of employees remain onboard to maintain essential functions as administrators seek potential buyers for Toolstream’s assets.
Joint administrator Hywel Phillips commented, “The closure has regrettably resulted in 111 redundancies. Our immediate focus is to support everyone affected during this difficult and uncertain period.”