At the meetings of members and creditors held on 21st December 2016, the company was placed in to creditors voluntary liquidation and Mike Fortune and Carl Faulds of Portland Business Support and Advice were appointed joint liquidators.
The company had operated as a tile showroom and retailer from leasehold premises in Kingston upon Thames, Surrey. The company commenced trading in 1998 and traded well for a number of years until the economic recession hit in 2008, which caused a significant decrease in sales. Despite the difficult trading conditions the company remained profitable and the directors focused their efforts on increasing turnover and profit margins. The position remained largely unchanged over the following years, however turnover was slowing increasing.
In early 2016 the directors attempted to sell the company in order that they could retire. Unfortunately there were delays in a potential purchaser raising the necessary finance and issues in reaching an agreement with the landlord in granting a new lease. Ultimately the sale did not complete and the directors continued trading whilst they decided the best course of action for the company.
Sales in recent months decreased significantly as a result of the Brexit vote and one of the directors suffered health issues. The company’s turnover dropped significantly and attempts to recover the company had little success.
Due to their ongoing health issues, the directors approached us for insolvency advice in October 2016. They concluded that the company could not be rescued and that steps should be taken to place the company in to creditors voluntary liquidation.
Following our appointment we will carry out our statutory tasks including completing an investigation in to the affairs of the company prior to the liquidation. We will seek to realise the company’s assets and assist the former employees with the submission of their claims to the Redundancy Payments Office in order that they receive their guaranteed entitlements.
Creditors are able to access the first report here