Johnson & Johnson Furniture in administration

Bespoke kitchen manufacturer Johnson & Johnson Furniture has gone into administration and made approximately 50 redundancies.

The family-run business started trading in the 1960s and established itself as a leading furniture manufacturer in the 1980s by supplying prestigious house builders.

But in 2009 the company entered into a Company Voluntary Agreement, with creditors insisting upon pro forma payments.

It placed strain on the company’s cash flow which, together with a downturn in trading conditions in 2010, exacerbated the trading difficulties and it defaulted on its CVA.

Johnson & Johnson Furniture appointed Steven Muncaster and Sarah Bell of MCR as joint administrators, which then made around 50 redundancies.

The aim was to facilitate on-going trading, while the administrators seek the sale of Johnson & Johnson Furniture as a going concern.

BSH UK CEO Uwe Hanneck retires





Michael Steinle

CEO of BSH UK 



Uwe Hanneck, CEO of BSH UK, has retired after nearly 40 years heading up Neff and the BSH Group subsidiary, and has been succeeded by Michael Steinle.

In 1972, Hanneck was tasked with establishing a British subsidiary for Neff, which was unknown in the UK.

 By the time he left the country, to run Neff France in 1979, the UK turnover had reached over £13million.

He is widely credited for introducing the concept of selling kitchen furniture with built-in appliances as a ‘package’; a principle that is now established as an industry standard.

In 1981, Uwe Hanneck returned to the UK as MD of kitchen furniture manufacturer F.W. Wrighton & Sons.

But in 1983 he returned to run Neff UK, when it was bought by the Bosch Siemens Home Appliances Group.



Former CEO of BSH UK
Uwe Hanneck has retired 



In 1990, Hanneck became CEO of BSH UK, heading up Bosch, Siemens, Neff and Gaggenau brands in the country.

Hanneck has chaired industry bodies, including Association of Manufacturers of Domestic Electrical Appliances (AMDEA) and the Kitchen Bathroom Bedroom National Training Group (KBB NTG).

He has been succeeded by Michael  Steinle, CEO of BSH Huschallsapparater AB in Northern Europe, where he was responsible for Sweden, Norway, Finland, Denmark, Iceland and the Baltic states.

Steinle started his career with BSH in 1982 as a graduate trainee in Siemens in Munich and has spent the past 28 years working for the group.

EDITOR'S COMMENT: As one factory door closes...

While the news of Ideal Standard’s factory closure in Middlewich makes for uncomfortable reading, I thought it was just another sign of the times. Cold comfort, I know, for the 249 affected employees and their families. My heartfelt sympathy is with them all. But it seemed to signify an inevitable turn of events for British sanitaryware production. After all, it follows hard on the heels of Twyford Bathrooms closing its Alsager factory and is only a matter of years behind Ideal Standard shutting plants in Stoke-in-Trent and Hull.

How many times have we heard companies talk about ‘leveraging group strengths’ and ‘maximising scales of efficiency’? Or to put it more simply, source from other companies, within the same group, from countries with a lower cost base.  It’s why mass production of high volume pieces no longer takes place in the UK, it’s just not cost-efficient, leaving all but niche and complex product manufacture remaining.  But, quite honestly, how long is it going to be until China gets that right, too?

Or so I thought….

Then, a glimmer of hope.

It appears China may not have all the answers to sanitaryware production, as it has been suffering from the global recession too. According to Imperial Bathrooms, which is renowned for manufacturing in China, factory workers were encouraged by the Government to return to the fields, leaving them (among other suppliers) unable to meet demands.  A situation, which we have been informed, has now been resolved.

But to meet its future growth plans, Imperial Bathrooms has now chosen to expand its sanitaryware production out of China.  Far away from the Far East, the company is seeking to acquire a ceramic manufacturing plant in the region of North West Europe, ‘with a strong preference for the UK’.  What a turnaround of events! Fingers crossed they will opt for a plant in the UK, after all the country is awash with talented, experienced employees in sanitaryware production.

While it would be foolhardy to suggest the two stories are interlinked, it does show there is more than one turn of events in the bathroom industry. I guess as one factory door closes…

Ideal Standard proposes to shut factories

Ideal Standard has entered a 90-day consultation period to discuss closure of its Middlewich plant in the UK, as well as two factories in France, axeing a total of 560 jobs.
The company blames worsening market conditions and a parallel trend of fewer ceramic pieces required in the bathroom.
In Europe, the ceramics sanitaryware market decreased by 23% in terms of volume between 2007 and 2010. For 2013, the sector in Europe is forecast to be 15% smaller than it was in 2007. (Source BRG)
In the UK, the ceramics sanitaryware market decreased by 30.7% in terms of volume between 2007 and 2010. For 2013, the ceramics sector in the UK is forecast to be 23% smaller than it was in 2007. (Source BRG).
The Development Industrialisation centre located in Middlewich will relocate to Rugeley, with a small number of jobs created, but it is expected there will be 249 job losses.
Ideal Standard issued a statement, which read:  "The UK continues to be a core market for ISI and the company remains committed to maintaining a strong presence there. We will develop our business by investing in new products to service the markets, strengthen customer service and continue to build our market competitiveness.
"The company and its management do not take these kind of decisions lightly, especially when it affects the livelihood of its employees. However, the company believes that this is a necessary step to regain efficiency and to safeguard the company's current position and future prospects in the ceramics industry across Europe."

Ideal Bathrooms offers year-long prizes

Celebrating its 30^th anniversary, distributor Ideal Bathrooms has launched a year-long promotion, with prizes including a weekend in Monte Carlo and use of a Lamborghini.

Ideal Bathrooms has teamed up 12 suppliers to offer one VIP prize per month spanning sports, holidays and AV products.

Customers who order a product from the featured supplier, during its month, will automatically be entered into a monthly draw.

January is Grohe month, with a prize of an Omega Seamaster watch; while February is VitrA month, with the prize of two tickets to a premier league match.

March is in association with Ideal Standard, with the monthly prize being two tickets to the Monza Formula 1 Grand Prix; while April is Mira Showers month, with the prize of two tickets to

Wimbledon Centre Court

.

Customers purchasing Roca product, in May, will be entered into the draw for two tickets to The Open; while those ordering Geberit product in June could win a Bang & Olufsen Beosound 1 and Beosound 4 remote control.

Triton is the featured company for July, with the prize of a Lamborghini Gallardo for the weekend, while August is Kaldewei month, when customers can win a 50” Samsung 3D TV and Bose entertainment system.

Twyford Bathrooms is the featured company for September and customers can win a case of vintage Dom Perignon champagne; while customer ordering Ideal Standard product in October could win a weekend in Monte Carlo.

Completing the year, November is in association with Saniflo and Kinedo and customers can scoop a weekend in New York; while customers purchasing Essential from Ideal Bathrooms can win a 13” Mac Book Pro.

In addition, Ideal Bathrooms will be presenting instant-win scratchcards with each delivery and donating 25p to charity Help the Hospices for every delivery made.

Showroom Forum launch in 2011

 

The first reader roundtable, 360.1 was held in London

 Kitchens & Bathrooms News has announced the date of its first reader roundtable of 2011, the 360.4 Showroom Forum, which will take place at the luxury Hotel Du Vin in Brighton on April 7. The event  has been created so that showroom owners, managers and designers can exchange ideas about high-street bathroom and kitchen retailing in 2011. It aims to allow retailers to learn from each other in a friendly, interactive environment.

The 360.4 Showroom Forum is free to attend, with lunch and refreshments all provided. In addition, guests are also provided with a gift to take home.

Mike Lloyd of Bathrooms & Wetooms
and Dave Sergison of Wirral Wetrooms at the
360.3 Showroom Forum in Manchester

It is the second year Kitchens & Bathrooms News has organised a series of reader roundtables. The 360.4 Showroom Forum, in Brighton, will be the fourth event, organised by the UK's largest circulated trade title for kitchen and bathroom professionals. The event is being jointly sponsored by Mira Showers and Gorenje UK.

Director of Bathroom Centres at Willbond, Lisa Jepson, attended The 360.2 Showroom Forum in Birmingham and stated: "I found it interesting and certainly worthwhile. I could not finish without making a special mention of your hospitality."



At the 360.2 Showroom Forum in Birmingham, Lisa Jepson of Willbond and Noel Glover of New Ideas talk shop 



Places at the 360.4 Showroom Forum are strictly limited and will be allocated on a first-come, first-served basis. For more information, contact the Editor of Kitchens & Bathrooms News, Philippa Turrell on: 01923 237799 or email pturrell@hamerville.co.uk

Further details about this event and future reader roundtables will be announced in upcoming issues of  Kitchens & Bathrooms News.



Editor's comment: Welcome to 2011

Happy New Year! Well, we've finally seen the back of 2010 and for those in Scotland, the North East, Yorkshire and Surrey, the last few remaining days were snow joke. Retailers were unable to deliver, fitters were snowed in, meaning completion deadlines were being extended for many kitchen and bathroom installations. And all of this going on when designers and retailers should have been making the most of kitchen and bathroom sales before the rise in VAT. At this point, I should state however, plucky retailer Park Bathrooms in Perth kept trading through 14" of the white stuff, even with threats of more snow on the way. But hopefully we've now all thawed out and it's business as usual across the UK. Whatever 'business as usual' is meant to mean nowadays.
It's fairly usual, in the current climate, to see business changing hands - as it looks like Bathstore is set to with rumours of Dophin Bathrooms' owner eyeing up the retail chain. But it is usual for the likes of wholesaler CostCo to be increasing its involvement in retailing kitchen furniture and range cookers? Seriously, whatever next? Bathrooms from TK Maxx or perhaps even bedrooms from Poundland? (Actually, I can't lay claim to the last comment - that was from @kkcltd).
With increasing pressure on the high street specialists, it's going to be a tough enough time without wholesalers becoming more involved in kitchen and bathroom sales. While some consumers will undoubtedly always want to shop for bargains, hopefully independent kitchen retailers and designers can play to their strengths - service, service and yet more service!
Hopefully 2011 will be a year of national celebration and festivities as we prepare for a right royal occassion. Oh no, not Will & Kate's wedding - it's our fifth birthday and, this year, we'll be celebrating our 50th issue too! But that's quite enough of our trumpet-blowing.
Whatever the year holds for us all, perhaps we should learn from the recent weather conditions and be better prepared for the unexpected. Because, let's face it, that's exactly what's in front of us in 2011.