£15m-turnover bathroom retailer falls into administration

A £15m-turnover bathroom, tile and paint retailer with 20 showrooms across the country has fallen into administration, with negotiations underway to secure a sale of the business assets to an undisclosed third party through an accelerated M&A process.

Oxfordshire-based Fired Earth Limited was founded in 1983, selling terracotta floor tiles from a farm. Since then, it has expanded into a high-end national retailer, with 20 UK showrooms and an additional 22 independent stockists selling its products.

However, like many retail businesses, the company has faced significant financial challenges, incurring losses for several years. In its most recent accounts, for the year to September 30 2024, despite reporting revenues of marginally under £15 million, up from £14.2 million a year earlier, it incurred an operating loss of close to £1.7 million.

Joint administrator Dane O’Hara of Leonard Curtis commented: “Fired Earth has been loss making for some time. In the last three years the company has been supported by its shareholder via substantial working capital loans, while efforts were made to return the business to profitability.”

“Unfortunately, the company has continued to incur trading losses, and its investor was not prepared to provide further funding to the business in the absence of a viable turnaround strategy.”

The company approached Leonard Curtis to undertake an initial review of the business and explore its options in late September 2025. However, the business was deemed to be incapable of being restructured in its existing form and the decision was made to seek a sale.

Dane O’Hara and Alex Cadwallader were appointed as joint administrators on October 31 2025. Despite a number of offers being received on an asset-only basis, O’Hara said the joint administrators had not received “a proceedable offer that preserves any of the locations or staff”.

As a result, all of Fired Earth’s stores will close, with the exception of its Head Office and warehouse premises in Banbury, which will remain open in the short-term to fulfil outstanding orders. 133 jobs have been lost upon the appointment of the joint administrators.

The joint administrators will continue to trade the business in administration in a limited capacity and fulfil outstanding orders from remaining inventory, pending completion of an asset sale.

In its most recent accounts, the company’s fixed assets were valued at £885,000 and current assets at around £5.1 million. However, net liabilities amounted to nearly £3.1 million.

Nick Stockley partner at Sussex law firm Mayo Wynne Baxter commented: “The administrators for Fired Earth do not appear to be trying to continue to trade the business as a going concern and look like they will simply sell Fired Earth’s stock to the highest bidder. They may also try to sell the goodwill, brand name and customer list but that will all be done by way of a fire sale.”

“The commercial leases will be terminated and the premises will be vacated sooner rather than later. Fired Earth products may not disappear entirely for now, but the products will be sold through other retailers. The brand’s unsecured creditors are likely to go unpaid.”

In a message to owners at businesses experiencing similar challenges, Stockley emphasised the importance of seeking professional advice, either from insolvency practitioners or debt management experts.

He said: “This may give the business the chance to find a debt management solution such as a company voluntary arrangement which will give the failing business the chance to avoid formal insolvency. If the business is already beyond saving, the directors can try to protect themselves from personal liability by taking professional insolvency advice.”

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