The company operated as a members’ social club from freehold premises in Andover, Hampshire, it had suffered from a significant drop in attendance and as a result, a decline in sales in recent years. The company was insolvent as it was unable to pay its creditors as they fell due. There were also issues regarding health and safety at the premises and the club’s insurance, which the club did not have funds to rectify and as a result a decision was taken to cease trading and close in April 2014.
It was clear that in its current format the club would not have sufficient income to re-open and support trading going forward and a decision needed to be made with regard to the future of the club. With increasing pressure from creditors and having sought insolvency advice from us it was concluded that administration would provide protection from further creditor action, required to safeguard creditors and members position, whilst allowing for the possibility that the club could re-commence trading, if that option was most desirable.
Following this decision, James Tickell and Carl Faulds of Portland were appointed as joint administrators of the company on 16th December 2014. We have recently passed the six month anniversary and as such are providing an update to creditors and members on our progress.
As outlined in the proposals, there were two options available with regard to the club, the first being the club be reopened from its existing premises, which would require a viable business plan being submitted to us and with details of how working capital would be raised and how creditors would be paid. No viable business plan has been received.
The second option was for the sale of the property and we have worked with our agents during the administration to market the freehold premises. A number of parties have expressed interest in purchasing the freehold premises. We discussed these offers with the informal members committee in confidence and we are working with agents to determine which option would provide the best outcome for creditors and members.
Further information is provided in our progress that can be found here