At the meetings of members and creditors held on 16th January 2017, Mike Fortune and Carl Faulds of Portland Business & Financial Solutions were appointed joint liquidators of the company.
The company was incorporated to purchase a stationery shop business in Petersfield, Hampshire. The initial funding was provided by the shareholders and the purchase completed in April 2008.
Unfortunately shortly after commencing to trade the economic recession hit and the company struggled. The company had further financial difficulties following a rent review whereby the rent was increased by £6,000 per annum. The shareholders provided financial support to the company whilst efforts were made to increase turnover to a profitable level and efforts seemed to be paying of as the company’s accounts reported a small profit in 2012.
Increasing costs and a steady decrease in footfall caused retails sales to fall and the company struggled to trade profitably. The director attempted to attract new commercial customers to turn the company around however poor customer service provided before the company took over the business meant it had limited success.
The director also implemented a new computer system in 2013 to make for easier stock management and allow employees to see what discounts could be offered. It was expected that the increased efficiency would assist in the company’s recovery. A review of overheads was also undertaken and costs were reduced where possible.
The shareholders continued providing financial support to the company whilst efforts continued to try and turn the company around. Unfortunately in 2016 the shareholders were not able to provide any further support and the director concluded that an orderly winding down would provide the best return for creditors. It was anticipated that all creditors would be settled with the exception of the director’s and shareholder’s loan accounts.
In December 2016, after it became apparent that there were insufficient funds to settle all creditors so the director formally instructed Portland to assist with placing the company in to creditors’ voluntary liquidation.
Creditors are able to access the first report here