Following the appointment of Mike Fortune and Carl Faulds of Portland Business & Financial Solutions as joint liquidators of the company on 16th January 2017, we have sought to realise the company’s assets as well as carrying out our statutory duties.
Prior to the liquidation, the company operated a stationery shop business in Petersfield, Hampshire. Unfortunately shortly after commencing to trade in 2008 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.
Subsequent to 2012, with increasing costs and a steady decrease in footfall caused retails sales to fall and the company struggled to trade profitably. The shareholders continued to support the company financially whilst the director attempted to turn the company around by implementing various changes as well as trying to attract new commercial customers, however these efforts had limited success. 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, although all creditors would not be paid in full.
Following the company being placed in to liquidation in January 2017 we established that no recovery was possible in respect of the goodwill and tangible assets. Goodwill had diminished as the company had ceased to trade and the tangible assets were abandoned when the company vacated the leasehold premises prior to the liquidation. We established that the landlord of the leasehold premises utilised the rent deposit held to settle arrears of rent, dilapidations and the company’s future obligations under the lease as such no recovery was possible in this regard.
We undertook our statutory investigation and submitted a report of our findings to The Insolvency Service.
Realisation have not been sufficient to settle the costs of the liquidation and therefore there are no funds available for a dividend to be paid to creditors.
Our final report can be found here