Troubles at Solus Garden & Leisure came to a head today as the company collapsed into administration.
Members of the trade have spoken of their sadness at the news that the garden industry's leading wholesaler has failed to find a way out of its difficulties.

Rob Hunt and Tony Barrell of PwC have been appointed joint administrators at Solus, and hope to secure a sale of the company.

Based in Hunnington, Worcestershire, Solus had a turnover of £29.3m in the six months to March 30 this year, and annual sales of £84.2m in the latest year for which accounts are available, to September 2012 - down 12% from the previous year's £96.1m. Operating profit slumped by 83% and pre-tax profit by 94%. The company employs around 250 people across its locations.

In late 2013, in the face of difficult trading conditions, Solus sought additional investment to support a turnaround, and in February this year it was announced that Scotts Miracle-Gro would be acquiring the company. However, weeks later the deal was off, and last month Solus brought in business advisory firm Grant Thornton to look at strategic options for the business.

Solus has since been engaged in discussions with a range of parties to try to secure investment. However, according to the administrators: "Whilst considerable interest was shown in the business, no offers provided a solvent outcome and as a result, the directors have decided to place the company into administration."

Joint administrator Tony Barrell said: "Our immediate priority is to engage with employees, key customers and suppliers with the aim of continuing to trade, which we believe is achievable. We are pleased to confirm that employees will be paid for work done prior to our appointment and whilst they continue to work.

"We are hopeful of securing a sale and there are already a number of parties interested in purchasing the business."

Solus supplies a number of own brands such as Yeoman, Joseph Bentley and ChapelWood, as well as third-party products. However, Scotts stopped supplying Solus as soon as the takeover deal fell through, and Bayer also pulled out. Fiskars, another key supplier, was one of several that stuck with Solus but refused to comment today.

Earlier this year, the wholesaler described as "temporary" a problem suppliers were having with credit insurance.

At rival wholesaler Stax, which has seen sales of garden products increase as a result of the problems at Solus, joint md David Hibbert told DIY Week that today's announcement would be bad news for some suppliers.

"The insurance was taken away a couple of months ago, so it's been flagged up for a bit," he said. "Suppliers who continued were always going to take a risk. If suppliers have been paid they'll be relieved, if not they'll be extremely upset and angry."

He described the news of Solus' administration as "tragic. A lot of people's hard work gets affected.

"As far as we're concerned it's all to do with trying to provide service that you can make money from. If you can't afford that service then sooner or later it's going to come back at you. If there's a job to be done then there's a price for doing that job, and that would indicate to me that that's one of their issues.

"The service they were providing wasn't costed out properly. It's pretty sad to be honest."

He said he thought it unlikely that the company would continue in its current form.

"I can't think it would survive as it stood. Too many people looked at it and walked away, from venture capitalists to suppliers to asset breakers. In its current guise I don't think anybody will [buy it]. It'll be broken up. The own brands are the interesting ones."

And he added that the situation would put new pressure on the distribution chain: "Scotts are already talking about delivering direct to some of the bigger guys."

Julian Winfield, chief executive of Haskins Garden Centres, also expressed his sadness at today's news. He told DIY Week that his company had been dealing with Solus for the last 20 years.

"But in recent years it's become less of an important supplier for us, and with the troubles at Solus we've tended to move away from them and we have plans in place. We will probably switch more supply to other sources, other wholesalers and direct suppliers.

"It's a very sad day," he added. "A terrific business and terrific support for our trade. They've helped me and many people in their business and careers."