We are now able to provide creditors with a progress report for the company, in respect of which Michael Fortune and Carl Faulds of Portland Business & Financial Solutions were appointed as joint administrators on 27th July 2016. The company is now in liquidation following the filing of the conversion notice at Companies House. The effective date of liquidation is 18th November 2016.
Creditors can access the portal to download the final report for the administration here
The textile design business commenced trading in 1994 and was incorporated in October 2001. The company traded as Westcott Design Limited and Appaloosa, from a studio in London.
The company had traded successfully for a number of years. It traded with buyers from around the world and was well established with a good reputation. The company had seen a downturn in sales in recent years, it was apparent that cuts needed to be made to ensure the company could continue to trade through the situation.
In an attempt to cut costs the company undertook several rounds of redundancy, all non-essential spending was cut and the director loaned the company money to keep it solvent until such time that the cuts made could begin to have a positive impact on cash flow.
The company’s situation worsened. Sales continued to fall, the cuts made were not sufficient to stabilise its current position. Employees of the company had not been paid for a few months and freelance designers were also waiting for payments of designs that had been sold. There were insufficient funds to meet liabilities as they fell due and with a large creditor of the company threatening legal action it was clear that the company could no longer continue to trade.
The director approached Portland Business and Financial Solutions for advice, he concluded the company should enter administration and that Michael Fortune and Carl Faulds be appointed joint administrators.
Immediately following their appointment the joint administrators took steps to safeguard the company’s assets.
We instructed chattel agents to manage the valuation and sale of assets. The property sale was in the process of completion prior to our appointment, the sale of this is continuing. The company owned two vehicles, some initial interest was received but no sale has been completed. As such the vehicles will shortly be going to auction. We received interest from a number of parties in respect of the designs and office furniture and equipment and a sale has been completed.
The book debts of the company were subject to discounting through an invoice finance company. It was anticipated there would be surplus funds from the collection of debts once the invoice finance company debt had been settled. We have received £21,000 in that respect and a further £13,500 in non factored book debts.
A creditor committee was formed in the administration, we shall continue to report to the committee during the liquidation