Incorporated in October 2003, the company operated as a wholesale supplier of cut flowers and floristry products to retail shops. Initial trading was good and in October 2007 the company moved to a bigger leasehold premises Bournemouth as it was expected that this would allow the company to continue to grow.
The economic recession had a significant impact on the industry, several customers closed their floristry shops and several bad debts were suffered in quick succession.
The company experienced cashflow issues and trading between 2010 and 2013 was challenging. Despite the tough trading conditions the director remained confident that the company could overcome the difficulties and focused his efforts on increasing turnover. The director’s efforts to turn the company around resulted in the company reporting profits in 2014 and 2015.
Latterly trading had become more difficult despite the director’s efforts.
Improvements in logistics and accessibility via the internet meant that the marketplace had become inundated with foreign wholesale suppliers. Regular customers were switching to cheaper foreign suppliers and the company was receiving fewer orders.
The director reduced prices in an attempt to attract new customers, although this meant tighter profit margins.
In early 2016, during a review of the company’s finances, it was considered that the company could not continue in its current format and reducing the level of trading to a more manageable level would not allow the company to settle its historic liabilities. In February 2016 the director approached Portland for insolvency advice and as a consequence of those discussions he concluded that an orderly winding down of the business would provide the best return for creditors. Portland were instructed to assist in taking steps to place the company into creditors’ voluntary liquidation.
At the meeting of creditors on 19th April 2016, Mike Fortune and Carl Faulds of Portland Business ad Financial Solutions and were appointed joint liquidators of the company.
Creditors are able to access the first report here