Toolstream Collapses Into Administration With Over 100 Job Losses

Major Tools Distributor Faces Financial Crisis

Toolstream Limited and Group Silverline Limited fell into administration on December 11 2025, with Hywel Phillips and Gavin Park of Teneo Financial Advisory Limited appointed as joint administrators. This development marks a significant blow to the UK’s tools distribution sector, as Toolstream is the sole distributor of more than 6,000 branded hand tools, power tools, fixings and workwear to retailers, wholesalers and merchants throughout the UK and Europe.

The collapse of this Yeovil-based company has immediate and far-reaching implications for the UK retail and wholesale sectors. Launched in 2009, Toolstream was recognised as one of Europe’s largest tool distributors and was an exclusive supplier of thousands of market-leading hand tools, power tools and premium workwear to independent and national retailers around the world. The company distributed well-known brands including Silverline, Triton, and Scruffs.

Financial Difficulties and Job Losses

The administration has resulted in significant job losses, with a total of 111 redundancies confirmed by administrators. The company’s financial struggles were evident in its most recent accounts, which showed turnover of around £57.8 million, down from £70.3 million a year earlier, while its operating losses widened from £2.1 million to £10.8 million.

The companies faced challenging trading conditions following the global supply chain crisis caused by the COVID-19 pandemic, resulting in limited stock availability. This had an adverse impact on profitability, with efforts to secure the funding necessary for the business to continue trading on a solvent basis proving to be unsuccessful. Administrators say they have decided to pause trading while gauging interest in the company’s assets from potential buyers.

Wider Impact on the Industry

The collapse of Toolstream represents a cautionary tale for businesses still grappling with post-pandemic economic challenges. The company’s failure to secure additional funding despite efforts to work with stakeholders highlights the ongoing financial pressures facing distributors in the tools and equipment sector. For retailers and wholesalers who relied on Toolstream’s extensive product range, the administration creates immediate supply chain concerns and forces them to seek alternative suppliers.

The administrators’ decision to retain a small number of staff while seeking buyers for the company’s assets offers a glimmer of hope that parts of the business might be salvaged. However, for the 111 workers made redundant just before Christmas, the timing could not be worse. This development serves as a stark reminder of the lingering economic impacts of the pandemic on UK businesses and the challenges facing the wholesale distribution sector in 2025.