Carl Faulds and Michael Fortune of Portland Business and Financial Support were appointed joint liquidators Wedo Shopping Limited was placed in the 26th August 2015.
Creditors can access the annual report for the company here
The company was incorporated in November 2005. The original business was focused on software development specialising in ecommerce software for online retailers. Following many years of the successful development of software the company opened its own online store in 2011, becoming an online retailer of beds and mattresses. The focus of the company shifted to the retail side of the business and the company ceased software development.
The online business traded successfully from a premise situated in Kennington Business Park, London. The company became a key retailer of beds and mattresses online, due to the success there was a desire to expand the business. In 2013 the company decided to open a retail store in Colchester, allowing customers to try beds in store before buying. As well as having its own website and store generating sales the company also had a sales agreement with Tesco, which allowed the company to be a third party supplier.
Although there was a good level of turnover, the company suffered cash flow difficulties as many suppliers invoiced pro forma, and payments due from Tesco were paid monthly. Furthermore the company had invested substantial funds into the development oer uf its own brand mattress, howevnexpected supplier delays meant the “own brand” product was never brought to the market.
The company made a number of changes to cut costs, including reducing the number of employees, reducing the stock held in store and eventually closing the retail store leaving only the online business. The company restructure resulted in the move to a smaller serviced office in Kennington Business Park, reducing the costs further.
Initial funding for the company had been met by the shareholders. Shareholders provided several injections of cash to the company in order to fund the shortfalls but were reluctant to provide further funding. The director considered the sale of the company, there was some interest however a number of concerns were raised and a sale was not possible.
With no future funding in place and no buyer for the company or the business, the director of the company approached Portland for insolvency advice and concluded that the company must cease to trade. On 31st July 2015 the director instructed Portland to assisted with the necessary steps to place the company in to liquidation.
Upon appointment, as liquidators we have recovered the assets of the company. This included the collection of bank funds; rent deposits, which have realised more than anticipated and realisations of book debts have been higher than expected. Funds have been received in respect of the sale tangible and intangible assets.
Preferential creditors of the company have been discharged in full. The liquidation will remain open while we continue to pursue debts owed to the company, we hope to concluded the liquidation within a year. It is anticipated there will be a distribution available to unsecured creditors.