UK's largest timber firm in takeover talks in face of collapse

The UK’s largest timber firm is in “advanced talks” over a sale after hundreds of jobs across Scotland were put at risk.

National Timber Group, which operates companies such as Rembrand, Scotia Roofing, and Forfar-based Orchard Timber Products, filed a notice of intention to enter administration last week.

The business, which has a combined turnover of £350m and employs 1,200 people across the UK, continues to operate as options are being explored.

It is understood that the notice of intention applies to all entities within the group, including those in Scotland.

National Timber Group has 25 locations in Scotland National Timber Group

The firm’s CEO, Mark Dixon, said it is now in “advanced discussions” with an interested party regarding the sale of a substantial part of the business.

Mr Dixon said the business has been experiencing “difficult trading conditions and liquidity challenges for some time”.

He said: “Like many other businesses in the sector, National Timber Group has been experiencing difficult trading conditions and liquidity challenges for some time.

“In response, the directors have been actively exploring options to stabilise and recapitalise the business. These efforts have included implementing cost reduction measures, seeking additional funding, and considering the potential sale of some or all of the business.

“This period has inevitably caused disruption, leading to uncertainty for employees, customers, and suppliers. NTG is now in advanced discussions with an interested party regarding the sale of a substantial part of the business, and also with other potential funding partners.

“To provide a period of stability during this process, notices of intention to appoint administrators have been filed in respect of each entity within the Group. As a result, interim moratoriums are now in place, preventing enforcement action from creditors.

“This measure allows the Group time to continue discussions with the interested party and to explore any other options that may be in the best interests of the business and its stakeholders.

“It is important to note that the Group is not in administration at this time.”

National Timber Group has 25 locations in Scotland, including two sites in Glasgow, three in Edinburgh, three in Dundee, and two in Grangemouth.

The company also has bases, including merchant and distribution locations, in Aberdeen, Inverness, Ayr and Stirling, among others.

The group, founded in Sheffield in 1920, also has 22 locations in England.