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A man setting up a kitchen showroom using products from a company that has gone into administration said the situation had been handled “terribly” because of a “lack of communication”.

One-hundred-and-five people have been made redundant at Waterline Limited, one of the UK’s largest independent wholesale distributors of kitchens and bathrooms, based in Newport Pagnell, Buckinghamshire.

Administrator Alex Cadwallader said the directors had been “forward thinking… proactive and took all the correct steps”.

But kitchen fitter Dean Bridgen said he was left in “panic” after spending around £20,000 on a new showroom in Redruth, Cornwall – using products purchased through Waterline.

He said he had a call from his rep four days before opening Dutchy Kitchens saying there were “difficulties” and it was about to get “turbulent”.

“That was about the only news we got for weeks.

“Everyday you are hoping that the phone rings and it is new information or they’ve been saved.”

He had already placed two customer orders with the company, although not paid, and is sourcing stock through other businesses.

“The first thing we did was panic,” he said.

“We just didn’t have any communication.”

Mr Bridgen said his Waterline rep had been “absolutely fantastic” but did not have any information.

The company was founded in 1947 and had more than 5,000 customers, according to its website.

Mr Cadwallader, from the firm Leonard Curtis, was one of two administrators appointed on 9 October, after which orders have not been fulfilled.

He said the business had seen increased orders during the Covid pandemic, but the number had then decreased.

This was one of a number of pressures including increased interest rates, the cost-of-living crisis and higher national insurance costs, he added.

He said the company had been relying on support from its shareholders which became “no longer viable” and a planned sale fell through.

Mr Cadwallader said, based on current information, he did “anticipate there will be a material return” to all groups of creditors, including staff and suppliers.

He said directors had taken appropriate advice and followed it, but when businesses were struggling it was often not possible to alert clients.

“Openly telling all your customers about the financial position of the business generally leads to it falling away relatively quickly, so it would not be a route directors would be advised to take.”

“[Directors] were forward thinking, they were proactive and took all the correct steps you would expect them to,” he said.

Around 15 staff members were still at work to help implement a “wind down plan”, where stock owned by suppliers is being returned.

• Mercialys SA recently announced that Deputy CEO Elizabeth Blaise will leave her position at the end of 2025, following more than 10 years with the company, while also reaffirming its upgraded 2025 financial guidance and positive operational performance through September.

• The continuation of leadership stability until year-end, alongside confirmed increases in footfall and tenant sales, highlights management’s confidence in Mercialys’ current strategy and outlook.

• With the reaffirmed full-year guidance and reported growth in key operating metrics, we’ll examine how these developments impact Mercialys’ investment narrative.

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To believe in Mercialys as a shareholder, one needs conviction in the resilience of French shopping centers and the company’s ability to drive earnings despite sector headwinds. The recent announcement about Deputy CEO Elizabeth Blaise’s planned departure at year-end 2025 does not materially affect the most important near-term catalyst, continued operational gains and the execution of retenanting strategies; the main risk remains exposure to regional economic shifts and the evolving retail environment.

Among recent company developments, Mercialys’ reaffirmation of its upgraded 2025 financial guidance stands out. With reported increases in both footfall and tenant sales, management has underscored its short-term confidence in the business, even as leadership transitions are on the horizon, highlighting the operational focus behind earnings stability.

By contrast, investors should be aware that persistent regional demographic changes could…

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Mercialys’ narrative projects €206.6 million revenue and €134.6 million earnings by 2028. This requires 5.4% yearly revenue growth and a €103.2 million increase in earnings from €31.4 million today.

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Simply Wall St Community members provided two fair value estimates ranging from €13.20 to €15.97 per share. While forecasts vary, the reaffirmed 2025 guidance and continued operational momentum remain key to the evolving performance outlook for Mercialys.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Companies discussed in this article include MERY.enxtpa.

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