Mike Fortune and Carl Faulds of Portland Business Recovery were appointed joint liquidators of the company on 11th September 2015. Sandbanks Marine Upholstery, which commenced as a sole trader business in May 2002, provided upholstery services principally for marine craft. Trading was good for several years with the business winning numerous large contracts and being awarded a prestigious supplier of the year award from Sunseeker International Ltd.
Unfortunately the business began to experience difficulties in 2013 when a large contract was lost. The economic downturn also had a detrimental impact on the business and the director took the decision to diversify to try and increase turnover.
In May 2014, the sole trader business was incorporated into a limited company and an invoice discounting facility was agreed with Barclays Bank Plc in order to assist cashflow. Efforts to increase sales continued and by March 2015 the director’s hard work began to pay off and orders were increasing. Unfortunately this only continued for a short period and the company experienced cashflow issues once again and soon the company was unable to settle PAYE and VAT arrears. By August 2015 the director concluded that the company was no longer viable and sought insolvency advice from Portland. Portland were subsequently instructed to assist in taking steps to place the company into creditors voluntary liquidation.
During the liquidation we have been able to sell the plant, machinery and motor vehicles for in excess of their estimated value, with the assistance of our agents. We liaised with the landlord of the leasehold premises to establish if any recovery was possible from the rent deposit held. We established that the landlord did not have a claim in the liquidation and as such the rent deposit was recovered in full.
At the outset, it was uncertain if there would be any recovery from the overdrawn director’s loan account. The director proposed an Individual Voluntary Arrangement (IVA) to deal with his liabilities, however this was rejected by his creditors. Subsequently the director decided to petition for his own bankruptcy and we have received £13,870 in full and final settlement of his loan account.
We assisted the seven employees that were dismissed as part of the liquidation process to submit their claims to the Redundancy Payments Office in order that they receive their guaranteed entitlement. Realisations have been sufficient to enable us to discharge preferential creditors and pay a distribution to the secured creditor under its floating charge. Unfortunately, there were insufficient funds for a dividend to be paid to unsecured creditors.
We are now taking steps to bring the liquidation to a close by convening the final meeting of members and creditors.
Formal notice of the meeting can be found within our final report here