Axminster Tools Warrington & Newcastle CLOSURES.

[Sachakins]

Just received this from Axminster Tools

Due to dramatically increasing costs, we have made the difficult decision to close the Axminster Tools Warrington store with immediate effect. We would like to thank you for your understanding and continued support.

 

[Sideways]

Thanks.
I'll attach their press release announcing closure of Warrington and Newcastle stores :

 

[niemeyjt]

Let us hope that they have acted in time, and that the brand as a whole survives.

They seem like a genuine and innovative outfit - unlike certain box shifters.

 

[Katomi woodsmith]

I have been using the high wickham store, I do telephone orders, hope they stay afloat

 

[Blister]

Low sales are affecting stores as well as on here .
Pre covid they were opening new stores

 

[johnnyb]

I loved going to Warrington years ago. But they made themselves expensive(in the market) at one time I wouldn't really consider anywhere else now I wouldn't consider axminster unless it was a unique product. I haven't visited the store in several years. interesting it was the northern stores that have folded. So much for levelling up.

 

[menatarms]

Loved the Newcastle store, was a great resource. Really gutted it's closed as there is isn't anything remotely close to it in terms of quality, stock, and in terms of knowledgeable staff in the region. I've only ever had very positive impressions from my dealings with Axminster, sort of similar to Timpsons. I do hope they turn things around, or can even get government help if it's that critical.

 

[Blackswanwood]

I’m sure it’s competitive and tough but I wouldn’t jump to the conclusion that Axminster are in dire straits. It’s entirely possible that this is simply a change of strategy to focus on online.

Earlier this year they introduced a loyalty points system, seem to be becoming the UK Laguna distributor and whenever I’ve been in one of their stores it’s not exactly been busy. If they have lease breaks I can see why they’d make changes.

I’m sorry for the people who worked in their stores who presumably will be looking for another job. Ultimately if we want Axminster and our other UK based firms (online or traditional stores) to survive we need to suck up that it costs a bit more and support them and not buy from/via the likes of AliBang.

 

[AJB Temple]

^^ I hope so. They are leaking cash though and are paying creditors very slowly I've heard. They've been on line for quite a while and not price competitive, but that was before FFX (disruptor) failed.

 

[Sachakins]

I’m sure it’s competitive and tough but I wouldn’t jump to the conclusion that Axminster are in dire straits. It’s entirely possible that this is simply a change of strategy to focus on online.

Earlier this year they introduced a loyalty points system, seem to be becoming the UK Laguna distributor and whenever I’ve been in one of their stores it’s not exactly been busy. If they have lease breaks I can see why they’d make changes.

I’m sorry for the people who worked in their stores who presumably will be looking for another job. Ultimately if we want Axminster and our other UK based firms (online or traditional stores) to survive we need to suck up that it costs a bit more and support them and not buy from/via the likes of AliBang.

I echo your sentiment, but what irks me is when these same suppliers are trying to sell us imports, the self same product as the likes of AliBang sell, but at vastly inflated prices.

I think that the one thing that Internet access has given us, is the ability to see the prices these imports can be had for, thus highlighting the rip off prices some suppliers have been charging us for years.

 

[Blackswanwood]

^^ I hope so. They are leaking cash though and are paying creditors very slowly I've heard. They've been on line for quite a while and not price competitive, but that was before FFX (disruptor) failed.

Hmmm - not sure we’ve got access to their cash position as it is today and is that creditors or one creditor mentioned on another forum where we’ve only got said creditors side of the story?

 

[TRITON]

I’m sure it’s competitive and tough but I wouldn’t jump to the conclusion that Axminster are in dire straits. It’s entirely possible that this is simply a change of strategy to focus on online.

I've never been in an Axminster store as they don't have them in Scotland, and have been buying from the company since about 2001, all online direct from their catalog or ebay shop and outlet.
The ebay outlet that sells off customer returns and can prove for some good bargains. Got their 16/32 drumsander there for £900 instead of £1300, and an extractor for £310 instead of £500.
The extractor was new unused and the sander looked like it had been used once

 

[AJB Temple]

Hmmm - not sure we’ve got access to their cash position as it is today and is that creditors or one creditor mentioned on another forum where we’ve only got said creditors side of the story?

Check their credit rating. My reference to slow paying was not related to a different forum.

My instinct is they must be leaking cash. They had a profit reversal 2022 - 2023 that was very significant, and were down to low cash reserves in the last published accounts. Since then they have exited leases, which even if on break clauses would incur costs to put the property back in original condition, plus redundancies which is a direct cash cost. My instinct is they are net cash negative. When FFX went down, attention was bound to turn to Axminster and creditors would be wary. If Axminster were happy with their financial position, then releasing some positive PR would be worth considering. What we are actually getting is negative news. If they stay on past track, audited published accounts will emerge around the end of January 2025 (from memory - not checked the filing dates). If I were a supplier I would have them on cash terms and provide no credit until I have seen the accounts. If I had unpaid for stock in their warehouse, I would be requiring return of it unless I had cast iron reservation of title clauses that would survive administration. I would be wanting to understand what assets the family pension trust controls and whether cash outflow from that (rentals) is still ongoing and whether directors remain on full salary (it was quite chunky when last published).

But I am super cynical having been in the financial reporting business professionally, so I may be more risk averse than many.