One of Britain’s biggest tile suppliers is on the brink of administration amid a wider downturn in the sector.

Sky News has learnt that CTD Tiles filed a notice of intention to appoint administrators on Monday as advisers scramble to line up a buyer.

Sources said Interpath Advisory was overseeing a sale process that could lead to a pre-pack administration later this month.

The identity of the prospective buyers was unclear on Monday.

CTD, which was acquired by former Body Shop owner Aurelius in 2022, supplies ceramic tiles to commercial and resident customers.

Based in Newcastle, it trades from 87 stores and employs about 400 people.

Keep up with all the latest news from the UK and around the world by following Sky News

Insiders said that CTD’s revenues were expected to slump by about 30% this year – from £113m in 2023 – reflecting the decline being experienced elsewhere in the industry.

CTD’s client base is principally made up of large housebuilders, many of which have been buffeted by macroeconomic headwinds even as the new Labour government pledges to jumpstart a housebuilding boom across the country.

Other players in the tile sector, including Tile Giant, Tile Choice and Johnson Tiles, have also experienced financial and trading difficulties.

One source said that CTD had managed to withstand the pressures facing it for longer than rivals because its owner had provided additional financial support to alleviate liquidity shortfalls.

Discussions are said to have taken place between Aurelius and key stakeholders in recent months.

Be the first to get Breaking News

Install the Sky News app for free

Aurelius declined to comment.

Related posts:

Deliveroo pencils in 8 March to unveil blockbuster float Colourful tech founder Wagner eyes $750m Rezolve valuation COVID-19 is no longer the biggest worry for financial markets – so what is? Aston Martin sues Swiss car dealer over deposits on £2.5m Valkyrie model Chancellor under immense pressure to start restoring order to public finances Inflation steady at 3.1% ahead of predicted surge in the cost of living Hong Kong financial regulator Alder lined up to chair FCA Premier League halts gambling ban vote amid Westminster turmoil Retirees and women to be targeted in Halfords drive for 1,000 new staff Ocado faces backlash as investors see no end to red ink in view Union is one step away from fresh Royal Mail strike dates Jet2 says holidaymakers looking to escape ‘our rainy island’ amid surge in demand