The Churchillian Limited was originally placed into administration on 2nd May 2014. The administration was subsequently converted to creditors’ voluntary liquidation on 12th November 2014 and the administrators were appointed liquidators.
The liquidation has now passed its first anniversary and the liquidators are therefore providing an update on the progress of the winding up, together with an estimate of the final outcome for creditors.
Prior to administration the company had operated the well known public house ‘The Churchillian’ on Portsdown Hill in Portsmouth, Hampshire. The company suffered from cash flow difficulties as a result of declining sales and rising overhead costs, like may other companies in the industry. As issues continued a Time to Pay arrangement with HMRC was negotiated in respect of VAT and PAYE arrears. A buyer for the business was sought, but due to the timescales involved and the failure of the time to pay arrangement, administrators were appointed to protect the company’s assets. A sale of the business was subsequently concluded as part of a pre-pack approach on 2nd May 2014 to an unconnected third party.
During the administration we received the business sale funds, the rent deposit and cash at bank together with various refunds. In addition funds paid to the company’s shareholders which were considered to be loans were recovered, following a settlement agreement being reached. The funds held in the administration were subsequently transferred to the liquidation.
The only other asset which we have continued to pursue is an overdrawn balance on the director’s loan account. The amount was vigorously disputed by the director and we have therefore held discussions with him and the company’s accountant and we have been able to establish the amount that we believe is due. We have written to the director requesting his proposals for repayment. He is currently looking into two finance options in order to raise the necessary funds to discharge the debt. We are hoping this will be resolved within the next few weeks.
The secured creditors were discharged in full during the administration. We anticipate discharging the claims of the preferential creditors and paying a small dividend to the unsecured creditors in due course.
For full details of the winding up please see the liquidators’ annual progress report which can be accessed here