IBMG Heads Off Financial Difficulties with Restructure

THE INDEPENDENT Builders Merchant Group (IBMG) has started a restructuring of its financial arrangements to recapitalise the business.

IBMG reports employing 2,200 people in 177 south of England roofing, plumbing and building merchant branches, with a total turnover of £650m. The company has grown through numerous acquisitions since 2018.

The restructuring will give control to the business’s largest lenders, Ares Management and Farallon Capital Europe.

Staff jobs are thought to be secure, but certain debts are likely to be unpaid, including money owed on various leases across the Group’s branch network to landlords. It will achieve a “significant” reduction in bank indebtedness.

IBMG Heads Off Financial Difficulties

IBMG confirmed the launch of 13 inter-conditional Restructuring Plans under Part 26A of the Companies Act 2006. This form of restructuring is usually chosen for companies facing or likely to face financial difficulties.

IBMG says its trade suppliers will be unaffected and not compromised by the Plans, who have reportedly received news of the Plans well. An IBMG spokesperson said “the feedback and sentiment was very positive”.

IBMG says it remains focused on business as usual with no disruption anticipated to day-to-day operations.

The IBMG spokesperson said that about 17 of the smaller branches are likely to be affected in total. RGB Building Supplies in Plymouth, acquired by IBMG in 2021, closed in early May 2025.

Other branches affected by the restructuring plans are:

• Chandlers Building Supplies Holdings Limited
• Chandlers Building Supplies Limited
• CRS Building Supplies Limited
• Devondale Electrical Distributors Limited
• Dougfield Plumbers Supplies Limited
• Fairalls (Builders Merchants) Limited
• Grant & Stone Limited
• Parker Building Supplies Limited
• Pennyhill Timber Ltd
• Rawle Gammon & Baker Holdings Limited
• Sussex Plumbing Supplies Limited
• Sussex Turnery & Moulding Company Limited
• Total Plumbing Supplies Limited

“It will be low figures in terms of people and turnover in terms of impact,” the spokesperson added. “The Group has been managing staff numbers since the start of the year and there will also be natural wastage across the business.”

The restructuring plan is subject to court approval and its details have been circulated to all creditors affected, with a proposed hearing scheduled for 10 June 2025.

The restructuring is expected to completed by the end of July.

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