Axminster Tools in administration.

[howardbParticipant @howardb]

I didn’t know this was happening until I noticed an unfamiliar company name at the bottom of the Axminster tools xmas special offer email to me – Newhow Ltd

It appears from the administrator’s report that all secured creditors – bank – HMRC etc will get paid off, and the unsecured creditors, more than £12.7 millions worth, will get SFA.

If you are interested, the whole saga is very well explained by the administrators.

https://find-and-update.company-information.service.gov.uk/company/03326979/filing-history

 

 

 

[jimmy bParticipant @jimmyb]

Sad times.

 

I only noticed last week that they had closed stores.

 

Jimb

[cedric 1Participant @cedric]

Oh dear. Another one gone, coming so soon after Ketan”s retirement and the closure of industry stalwart Arc Euro. Is this another sign of the slow death of our hobby as enthusiasts age out?

The administrators summary states the reasons for closure as declining footfall in physical stores post covid and declining demand overall coupled with increasing costs.

Is the hobby declining or did everyone get used to buying online in Covid days and now buy from the cheapest suppliers such as Aliexpress etc direct from China.

I know not many will buy a lathe or mill from Aliexpress etc. But I know personally it is hard to beat for tooling, indexable holders and inserts, dial indicators,  tailstock centres, milling cutters, etc etc etc.  Yes it’s not Starrett quality buts it’s great value for money at hobby level.

Shame to see local companies and brick and mortar shops disappearing though. Hopefully the survivors will fill the gap and grow stronger in the process.

[JasonBModerator @jasonb]

As Axminster were predominantly woodworking suppliers the engineering side was likely to only be 10% of their business so not sure if that is a sign that our hobby is in trouble.

More likely down to people buying less expensive items direct from China etc or UK Warehouses

Over the 30 odd years I’ve been using them for woodworking they have changed a lot. Originally they did a lot of brand nam eitems all good quality but over time went more and mor eto their own Axminster brand or other in house lables so ended up selling a lot of imported items with their paint colour and name on it. This combined with people being able to buy similar direct probably did not help.

[cedric 1]

On cedric 1 Said:

Hopefully the survivors will fill the gap and grow stronger in the process.

No – they too will close if people don’t use them.

[HollowpointParticipant @hollowpoint]

Arc Euro, Zoro and now Axminster! Crikey things aren’t looking good, I hope this isn’t a trend.

[Nigel Graham 2Participant @nigelgraham2]

A bad do. At this rate it will become impossible to buy anything reliably, and with reliable after-sales service.

The accountants’ report gives such a long list of creditors, it shows Axminster basically owes money to practically all of its suppliers of goods and services. They will receive hardly anything, making holes in their own finances.

Perhaps those, yea even upon this site, who gleefully say they buy from Amazon / Aliexpress / etc / etc might think of what they wish for.

[Ches Green UKParticipant @chesgreenuk]

It is sad to hear that Axminster is closing, especially after ArcEuro’s recent closure.

I wonder if there are now any UK based comanies left that are able to support the owners of Sieg lathes and mills, especially regarding the electrical parts?

Maybe Clarke Power Products is a source…. https://www.clarkeinternational.com/c/metal-lathes-milldrills/ …or Chronos …. https://www.chronos.ltd.uk/product-category/milling-machines-clarke/ ?

There is Sieg Machines in Germany …. https://www.sieg-machines.de/Accessories-lathe-C2-/-SC2 ….but I don’t see any circuit bords or motors listed.

Ches

[larry phelan 1Participant @larryphelan1]

Jason and Hollowpoint, I think you have both got it right!

I too bought much from them over the years, but I noticed the change creeping in

Another one bites the dust.

[JasonBModerator @jasonb]

Bit early to start getting Worried

Looks like things will be split into two Companies, Newhow will sell machinery and tools sourced from around the world which could possibly include Sieg.

And another part will concentrate on tehUK made items.

 

[Ches Green UKParticipant @chesgreenuk]

Jason,

Thanks. I’ll look out for Newhow Limited’s offerings in the future.

Ches

Edit: Just saw a post on Instagram….https://www.instagram.com/p/DQXFDw6DIhi/

“axminstertools

We wanted to share the news that Axminster Tool Centre Ltd has undergone a restructuring, separating our Retail and Manufacturing operations into two independent companies.

The retail side has been acquired by Newhow Limited, led by members of our existing management team. This change helps secure the long-term future of Axminster Tools and ensures continuity for our valued customers, suppliers, and partners.

By focusing on our online presence and flagship store in Axminster, Devon, we’re building on our greatest strengths; trusted products, advice, and a commitment to quality.

What this means for you…

Gift cards will still be honoured, if you have a gift card with us you can still spend it subject to usual expiry dates.
Back orders will be sent as usual; you’ll see our stock levels improving over the coming weeks.
Warranties remain valid, and you can expect the same trusted advice and support, both before and after your purchase.

New products; we’re introducing some exciting new products that we know you’ll love.

Our people have always been at the heart of Axminster Tools, and throughout this process our priority has been supporting our staff and working to keep our team together wherever possible. That’s why it has taken us a little longer to share this update. We remain a family business, proud of our 53 years of trading and the strong relationships we’ve built with our customers, suppliers, and the woodworking community.

Thank you for your continued support and understanding as we move forward together.”

[noel shelleyParticipant @noelshelley55608]

Ebay, Ali, China,  People new to the game tend to look at the bottom line, whereas old hands look at quality or service. When I bought my lathe the only one that was common was Myford so that was what I bought ! Now there are many names, I could ask advice from work friends about what to get, that’s all gone.

Service costs money – the questions that come here indicate that in some cases there is no service, Your on your own, The bargain price may have been good – BUT ! The cost of keeping spares on the shelf also costs money. Was it such a bargain now ?

It was so sad to see Ketan go, now Axminster – who will be next ?  Noel.

[Stuart Smith 5Participant @stuartsmith5]

As Ches has found, it looks like Axminster is not closing down, but split into 2 companies. ( each one run by different members of the original team).

Just the main shop and online sales open and still selling under the Axminster name. Another company producing (and presumably sourcing) the stuff they sell.

Bad news for the creditors but it looks to me like the Axminster business will continue.

Stuart

[JasonB]

On JasonB Said:

As Axminster were predominantly woodworking suppliers the engineering side was likely to only be 10% of their business so not sure if that is a sign that our hobby is in trouble.

More likely down to people buying less expensive items direct from China etc or UK Warehouses

Over the 30 odd years I’ve been using them for woodworking they have changed a lot. Originally they did a lot of brand nam eitems all good quality but over time went more and mor eto their own Axminster brand or other in house lables so ended up selling a lot of imported items with their paint colour and name on it. This combined with people being able to buy similar direct probably did not help.

True. Similar age demographic though  and many like yourself who do a bit of both hobbies. Younger people don’t seem to have the time or inclination for manual hobbies. To busy with phones and gaming. And unable to afford housing with space for a workshop of any sort. What they can afford is so expensive they are working “side gigs” to help pay for it. Leisure time such as our generation enjoyed is becoming a luxury as inequality increases and the middle class declines.

[JasonBModerator @jasonb]

No the woodworking was to earn a living not a hobby for me. They were used buy a lot of trades people originally. I first bought from them in my early 30s so the demograph is not the same either.

There are still plenty of hobby woodworkers and “makers” in general but it they are doing it for pleasure then it becomes harder to justify the cost of quality items which won’t earn their keep so the hobby user is more likely to shop around and buy based on price. This does not include the small number of “tool tarts” who buy so it looks good on the shelf and can’treally use the tools to full advantage.

[JAParticipant @ja]

As Jason says Axminster sold good woodworking tools made by British, American and other manufactures from their shop on Axminster high street. I never understood why they went away from that business model, just supplying good tools to discerning customers to competing with the likes of B&Q and the other Chinese machine tool importers. I guess splitting the company in two is the old trick of putting all the debts in one and, hopeful, the useful assets in the other. I trust that the successful side will return to the original business model.

I am afraid we are going to see more failures since there are too many firms selling cheap goods into a declining market. I would not bet on which companies will survive.

JA

[Mark EasingwoodParticipant @markeasingwood33578]

It’s tough out there!

I have used Axminster since about 1980, they used to sell branded power tools from a full page ad in the “Woodworker” magazine, I still have a few of them.

A family owned power tool sales and hire company near me (Elcocks), recently went out of business.

My main supplier of Hardwoods and Softwoods is also in Receivership, they are part of a Group with almost 50 branches around the country, and some 1100 employees, of which half were made redundant just before Christmas, It is hoped that new owners can be found for at least some of the branches. The other supplier I used went out of business a few months back.

The branch in Hull is the last Hardwood merchant in Hull, which being a timber importing Port City, once had lots.

[jimmy bParticipant @jimmyb]

I’ll not grace them again.

“Restructure”, does this mean the small debts are not honoured?

A company I used to work for did this and shafted the pension…

 

Jimb

[VicParticipant @vic]

Much of what Axminster Tools sell could easily be bought from any number of other outlets or even direct from China.

The biggest loss, for wood turners in particular, would be the closure of their Chuck manufacturing facility. Axminster Tools Wood Turning chucks are in my opinion the best you can get and they have the largest range of accessory Jaws for them. I have three different makes of wood turning chucks and the Axminster are better designed, manufactured and finished than the others and made from Stainless steel. Herein lies the problem, their chucks are more expensive, and cheaper alternatives are perfectly adequate. A primary reason for choosing Axminster is that another vendor doesn’t make the accessory jaws you need.

Axminster Tools also make some other nice products in house at Axminster. I understand that the manufacturing side has been split from the company so I hope they continue to survive in these difficult times.

[Howard LewisParticipant @howardlewis46836]

Life is tough in all spheres, (except perhaps top management)

We, and all our suppliers (whether food, hospitality, clothing or goods in general) feel the effects of rising taxes, costs and materials. So we tighten our belts and, sadly the weakest fail.

Lets hope that Newhow survive so that we have continuing supplies of machines and accessories.

Howard

[larry phelan 1Participant @larryphelan1]

Yes, I think we will see a few more places closing down in the near future.

“I have a little list ” ect.

It is a pity about the creditors but places going to the wall dont really care about them, it,s just a case of “Hard Luck “, have seen it happen too many times.

Talking about timber suppliers, most of the ones I used to use years back no longer exist.

Sign of the times ???

[Bill DawesParticipant @billdawes]

I think it is a sign of the times in general, almost daily you read about cafes, restaurants, shops large and small, pubs, you could go on and on. And now today reading of redundancies in UK car manufacturing likely.

Crippling rates, costs, taxes and one of the highest energy costs in the world are usually cited as reasons.

Not much to encourage young entrepreneurs is there.

Bill D.

[jimmy bParticipant @jimmyb]

When I can buy good quality carbide end mills from Temu for less than half the cost of this country, what else am I going to do?

 

Jimb

[bernard towersParticipant @bernardtowers37738]

I dont know what you mean by likely Bill but there were 550 5 days before christmas in my locale which the local news is not interested in.

[Howard Lewis]

On Howard Lewis Said:

We, and all our suppliers (whether food, hospitality, clothing or goods in general) feel the effects of rising taxes, costs and materials. So we tighten our belts and, sadly the weakest fail.

 

Weakest?

Or sometimes the ones with higher standards and more integrity.

[Author]

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