A year ago we came together at Glee after one of the biggest years of change in the industry.  A year later there’s been more change but also more consolidation and re-financing of businesses such as at Gardman where Rutland Investments completed a Management Buy Out with Jonathan Halford at the helm. 

Just before Glee, GTN Xtra met up with Jonathan to find out more about the man who won “Private Business Turnaround of the Year” while he was at Forest and understand his vision for Gardman going forwards. 

You’ll read how committed he and his senior management team are to the buyout; “we're all investing in this business, so we're all personally committed,” and his views on the question he often gets asked: “Why have you got Agents?  Surely you’d rather have an employed sales force?”  His answer; “It works, that’s the bottom line.  They’ve done it for years and years and those relationships and experience are worth a huge amount.”

GTN Xtra:  So what made you get involved with Gardman?

“Well the relevance was that Forest was a supplier to the UK garden market and had many of the same challenges that Gardman faced including new owners who had invested in the business to create value. They saw what I’d achieved at Forest and wanted me to go into Gardman to support the value creation by bringing some of that knowledge and experience with me.” 

GTN Xtra:  Are you also involved with a company that does buyouts? 

“No, I will be asked to go into businesses  and do what I've been asked to do at Gardman and what I’ve done at Forest. My job is to unlock the value that sits within the business irrespective of whether that results in a buyout or not.  I’ve got a network of trusted people that I will bring into certain situations to support any business transformation projects.” 

GTN Xtra:  Are you full time at Gardman now?

"Yes and no.  Because I’ve stepped in as the Executive Chair, I’m looking after the day to day running of the group and that therefore requires me to physically be in and around the business every week but I have other commitments as well. Having said that, psychologically I’m in [Gardman] 24-7 and that might sound a bit of a cliché, but i don’t go into anything without 100% commitment to it and that is absolutely true for Gardman.

GTN Xtra:  There was a surprise last week when another senior staff change was announced, how settled is the team going forwards?

“It’s settled. It is important that we have a stable clear management team that will take us forward for the long term. We've all needed as part of the buyout to commit to that and we've all had to demonstrate we can add value. We're a collective, the senior management have all invested in the business - so we're all personally committed - when we look around we all have to make sure we’re as committed as each other.  It’s unfortunate when senior people leave but you have to move on.  I understand that Gardman, as market leader, inevitably attracts a lot of noise; people are interested in it, although I do think our Competitors should focus on their own businesses a bit more frankly. Every business has staff turnover - we're no different, we've come through a period of significant change, we are out the other side but there will be the occasional person that comes and goes - that’s the nature of it. 

GTN Xtra:  Are you looking to appoint a CEO?

“I am, definitely, yes.  Interestingly since I’ve taken on the executive chair role I’m loving it but equally because of what I do with all the other things its right that someone does come in and once I’ve got it moving in the right direction they will be able to take it on further. 

GTN Xtra:   Will you be in a better position to recruit having done the exec chair role and the hands on stuff ?

“Without question.  I have learned a huge amount just by being in the business a lot more – it has been really invaluable for me.  Being Non Exec Chair, whilst you understand the overall direction of the group inevitably you’re not dealing with all of the day to day nuances. 

GTN Xtra:  What are your biggest learnings so far?

“That you have to relentlessly manage the day to day detail. The Board can set a direction and be clear in what we want to do but we can’t for one second take your eye off the ball. I believe that to be true for all businesses but particularly Gardman where we have nearly 3,000 skus and operate across multi-channel with multi product categories. You simply have to be all over the detail every day. 

GTN Xtra:  You’re only as good as your last delivery into a retailer?

”If we don’t supply a good quality product on time, we’re not even in the game. It starts and ends with those basics and given the massive change we’ve had in the last 18 months and the funding constraints under the previous ownership  we’ve had our challenges but now we’ve been given the resource and the support to deliver on our promises. The “new” Gardman has no debt, it is an all equity business and it’s our equity alongside our investor’s equity.  We’re in it, it’s personal and we’re going to deliver, and I don’t say that lightly. 

GTN Xtra:  And that gives you a platform where you can go forward without the debt and with the confidence to deliver product and meet demand?

“Yes. In one of the first conversations that I had with our new Investors they said to me: What do we need to do?  Well, what we need to do is deliver a good quality product on time.  That’s where we start from.  Of course we’ve got lots of exciting things over and above that.  I think what we will present at Glee will be fantastic - we’ve got some cracking stuff, but we deliver the basics first and foremost. And that’s what we are going to do. 

GTN Xtra:  Gardman seemed to take good advantage of the sale of Solus and the ensuing situation.  You were able to meet demand?

“Yes and no. I think we were in the right position to take advantage of it because we offered the right range and were a well known brand and trusted in the market.  But it presented some major challenges for us because we weren’t sure how much we would pick up and it did cause problems for this season  in terms of servicing the market as well as we would have liked , so that is something we’re all over now in terms of forecasting next year because we’ve got the benefit of the season.  The demise of Solus wasn’t the only variable to be managed in that we had the constraints I’ve already talked about, but it was another factor. 

GTN Xtra:  At the time I remember GTN talking to you about whether Gardman were going to buy Solus – did you make the right decision?

At the time it wasn’t as attractive to us as it was to others - we were going through such a significant period of transition it just felt as though it was one thing too many. Additionally we have some very talented people in  Gardman who could develop the product ranges where we had gaps so we could take advantage. Tooling would be a prime example of this. Henry Corbett came from Solus [to Gardman] and he developed the tool range there, so he came here and we had that asset in the business.  He has made a massive difference, so we have done it organically rather than inorganically which would have cost a lot more money. 

GTN Xtra:  Agents.  How do your investors look at the business when it is reliant on agents selling rather than its own in house sales force?

“Naturally when investors were looking at Gardman that was one of the things they wanted to understand better.  Their conclusion is entirely consistent with mine which is that our Agents are one of the biggest assets for Gardman. They have been with us for a very long time, they understand the market, they know the customers, they know the products and I am bringing them deeper into this organisation because they can influence things like new product development and service innovation.  They are out in the field every day and so they know what we need to do. So we need to listen and work with them to take the business forward. 

GTN Xtra:  I guess if someone is just looking at the numbers there is a sales cost that needn’t be as high as it is.

“Yes, perhaps that’s what an accountant would say, and maybe I’ve learnt this along the way, I was an accountant 25 years ago but not now.  They [our agents] are a significant but very important investment for this organisation.  Of course they need to be effective and we need to work with them to make sure we get the best return but it’s the lifeblood of our independent garden centre business and we understand that.  They’ve done it for years and years and those relationships are worth a huge amount; our Customers tell us all the time how much they value them.  It’s often the first question we get asked – Why have you got agents?  Surely you’d rather have an employed sales force? The answer is “ No. It works - that’s the bottom line”. 

Read the full interview including Jonathan’s views on future trends and brand development at Gardman in the October issue of GTN.

See pictures below of the Gardman stand at spoga+gafa last week.