Just days after the news broke that negotiations between Scotts and Solus about joining forces had
broken down, Solus has announced that it has engaged business advisory firm Grant Thornton to look at strategic options for the business.
The company has also moved to reassure customers of its stability and to quell rumours that it no longer has stock of Scotts products.
In a statement, ceo Mark Pearson said: "We are in discussion with several trade and financial partners. Clearly, as we are now in peak season, it is important for all parties concerned that we conclude any discussions as quickly as possible.
''I want to thank those long-standing retail partners of Solus who have sent some excellent messages of support. It is great that they are continuing to buy in volume from our Solus own-brand ranges. We are fully stocked and the promotions we are launching now will be backed up by further special offers over the next two weeks.''
Scotts said last week that its distribution agreement with Solus had expired and that its products would now be available from Decco, Stax or Scotts. However, Solus told DIY Week today that rumours that it now had no stock of Scotts products were untrue. Orders are still being taken and there is no problem with short-term stock levels.
Solus' statement also referred to "the cautious approach taken by Solus' third-party suppliers", likely to be a reference to the fact that a lack of trade credit insurance is currently proving problematic for the company. Bayer is understood to have pulled out of supplying Solus today, although other key suppliers including Fiskars, RSPB, Town & Country and Neudorff are still on board.
DIY Week was told that the credit insurance problem was "temporary".
Mr Pearson said in the statement: "We continue to work with our brand partners, with exception of Bayer, to deliver orders as usual to the excellent service levels for which Solus has always been known.''
DIY Week was also assured that Solus "is not in trouble", and that it is working with Grant Thornton to ascertain the future direction of the business. The Solus sales team and reps are now out talking to customers and taking orders to reassure them and deal with questions.
We understand that Scotts told customers that the deal was off while negotiations were still ongoing, despite an agreement not to. Solus thinks that as a result it has itself appeared to be slow to respond to the situation and wants to ensure that customers get the true picture.