The Competition and Mergers Authority CMA is investigating the acquisition by Topps Tiles of Tildist Realisations Ltd (formerly CTD Tiles Ltd) assets.

Topps Tiles acquired CTD brands, 30 stores and all related Intellectual Property from CTD Tiles from administrators James Lumb and Will Wright of Interpath Advistory for £9million.

The CMA has served an initial enforcement order under section 72 (2) of the Enterprise Act 2022 on Topps Tiles Plc and Tiles4Less Ltd.

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It stated the CMA has reasonable grounds for suspecting that Topps (whose subsidiaries include Tiles4Less and certain assets of Tildist Realisations Ltd formerly CTD Tiles Ltd) may have ceased to be distinct.

The order means Topps Tiles will have to refrain from further integration of CTD Tiles, with both businesses operating separately and the CTD brand remaining, until it makes a decision.

The statutory deadline for the decision of the order has yet to be confirmed.

A statement provided by Topps Group read: “Topps Group notes that, further to its announcement of 2 October 2024, the UK Competition and Markets Authority (the “CMA”) has now served an initial enforcement order under section 72(2) of the Enterprise Act 2002 (the “IEO”) on Topps Group in relation to the CTD Acquisition.

“An IEO is routinely applied in cases where the CMA reviews a completed transaction.

“It requires Topps Group and its subsidiary, Tiles4Less Limited, to, amongst other things, refrain from taking any further action to integrate the CTD Business into the Group and ensure that, except with the consent of the CMA, the CTD Business is carried on separately from the Topps Group business until the CMA review process has concluded.

“The Group is actively working with the CMA to ensure compliance with the IEO.

“A further announcement will be made in due course.”