One of Kent's long-established independent builders' merchants has announced that it will cease trading later this year, which will result in the loss of 34 jobs.
The company has confirmed that it remains fully solvent and will undertake an orderly wind-down of operations over the coming months. The decision follows three consecutive years of financial losses and an assessment that current trading conditions make a return to sustainable profitability unlikely in the foreseeable future.
Founded by John Sparrow in 1971 to support his property development activities, OBM grew into a respected regional supplier serving builders, contractors, tradespeople, and homeowners across Kent and the surrounding area. During its 55-year history, the business successfully navigated numerous economic challenges, including multiple recessions, the global financial crisis and the COVID pandemic.
However, the company says that rising operating costs and a sustained slowdown in construction activity have significantly affected the economics of the business in recent years. Increasing interest rates, regulatory costs, energy prices, employment expenses and business rate increases have all contributed to a prolonged deterioration in profitability across the sector.
A spokesperson for OBM said: "This is an incredibly difficult decision for everyone connected with the business. We have explored every available option to restore profitability and secure the long-term future of the company.
"Unfortunately, despite the commitment of our management team and employees, current market conditions have made it impossible to achieve a sustainable return to profitability. While the company remains solvent, we believe that an orderly wind-down is the most responsible course of action for our employees, customers, suppliers and other stakeholders."
The company paid tribute to its workforce, customers and suppliers, acknowledging their contribution to OBM's success over more than five decades of trading.
The spokesperson said: "We would like to express our sincere gratitude to the generations of employees whose hard work built the business, to our loyal customers who placed their trust in us, and to the suppliers and partners who supported us throughout our journey. Their loyalty and commitment have been fundamental to OBM's success and enduring reputation."
OBM will continue to trade during the wind-down period and will work closely with customers, suppliers and employees, and its advisors, including financial and real estate advisory group BTG, to ensure an orderly conclusion to its operations.
Lee De'ath, Partner at BTG, said: "After experiencing a number of years of difficult trading, OBM approached BTG for advice on its options and being that the business remains fully solvent, an orderly wind-down of operations over the coming months has been decided upon as the best course of action. This allows for a controlled process that will ensure all of the team members being made redundant are able to receive everything they are entitled to, and customers and suppliers can prepare, ahead of the merchant's eventual closure. After this is complete, we will work with the directors to discern the next course of action."
