ReSolve successfully completed the sale of Direct to Customers Ltd, an online timber cutting business, to Online Retail Services Limited, preserving 17 jobs amid challenging market conditions.

Target Company Overview

Direct to Customers Ltd, founded in 2020, specializes in online timber cutting services. The company identified a crucial gap in the market for a streamlined, user-friendly platform that offers customers the ability to specify custom dimensions for timber products. Operating through three online stores, Direct to Customers offers a variety of materials including medium-density fibreboard (MDF), plywood, and melamine-faced chipboard (MFC).

Despite having a strong sales performance, Direct to Customers faced numerous challenges due to escalating operating expenses and sales costs. Attempts by the director to enhance profitability included raising retail prices, negotiating improved terms with suppliers, and recycling off-cuts from previous orders. Nevertheless, high inflation rates and soaring energy costs further exacerbated the company's financial struggles, ultimately leading to its administration.

Industry Overview

The timber and construction industry in the United Kingdom has recently experienced significant pressures, primarily driven by economic factors such as inflation and an increase in energy costs. As of 2024, these issues have particularly affect