ICSM News Update: who has gone bust and crashed and burned this summer – plus the billion dollar debts left by Sir Philip Green’s Arcadia – and who will buy Oxford Street’s Topshop building?
The pandemic has seen a major shift in consumer habits with a shift from the high street to online shopping. Debenhams collapsed along with a whole list of household names with the biggest being the Arcadia group who own stores like Burtons, Top Man and Dorothy Perkins.
Sir Philip Green’s empire has been sold off piecemeal by piecemeal by the administrators – mainly to the new inheritors of online shopping like Boohoo.
The BBC’s Emma Simpson reported: “More than 8,700 chain stores closed in British High Streets, shopping centres and retail parks in the first six months of this year, research suggests. That is an average of nearly 50 outlets a day as the impact of the pandemic and changing shopping habits continue to hit many towns and city centres.”
In November 2020 Arcadia finally collapsed owing around two billion pounds to creditors many of them hauliers, printers, shop fitters, cleaners, sign makers and manufacturers of clothing. The taxman and VAT also took massive hits as did landlords but the upshot is despite a fire sale of stock which raised over a million quid very little will be left for unsecured creditors.
This November the final acts will take place as the last part of the group is sold by administrators Teneo – Topshop in Oxford Street. Price tag: £420m according to Forbes. However almost all of that cash will go to pay off mortgage on the sit to a secured creditor in Apollo MI. So little for everyone else – once Teneo are paid along with any other secured creditors.
“It’s a watershed moment in retailing history,” said Ian Carrotte of ICSM, “with the high street hit by lockdowns when stores were denied footfall. The jury is out on whether this is a long term trend – it may go back to pre-covid crisis in the future if stores can entice people back in with added value. So many suppliers of these stores have lost out as each one needs signage, graphics, stock and a hundred and one other things to make them attractive.”
More firms will collapse so get paid now
This autumn more stores will collapse as the furlough system ends meaning zombie companies will go to the wall. ICSM has offered a 90 day free membership to businesses along with its free legal letters designed to prompt late payers to settle accounts. Around 90% of unpaid invoices get paid as a result of sending out one of ICSM’s letters and they also have a micro debt recovery service. Any invoice that has not been paid in several years under £500 that has been written off despite the company still trading can be chased up using this service.
“Surprisingly the micro debt system works in the majority of times,” said Ian Carrotte, “it’s due to a third party chasing the money that does the trick. They know we mean business and will take them through the legal system if they don’t pay their supplier.”
Back to Oxford Street and who will buy the empty Topshop building. The street remains a thriving retail centre so it is likely that a potential new landlord with an eye on the future will take it on – but with the possibility of installing flats above the shop to help pay the bills.
“The death of the high street has been greatly exaggerated,” said Ian Carrotte, “but remember – Amazon are now opening retail stores so perhaps it’s just a changing of the guard.”
Below is a sector by sector list of firms who hit the buffers this summer:
CONSTRUCTION, PROPERTY AND ALLIED INDUSTRIES
Administrators Appointed
MS Construction Group Limited 12362907
Compulsory Liquidators Appointed s 136
GILB Construction Limited 07123381
Creditors’ Voluntary Liquidation Deemed in Consent Meetings
G & S Construction (NE) Limited 09602514
Kent Building Maintenance & Refurbishment Limited 04267589
MKB Construction Limited 10754932
Multi Trade Design & Build Limited 11830757
Sunray Construction Limited 09107175
TUD Construction Limited 10906495
Liquidators Appointed
A Lewis Construction Limited 08206244
Carillion Properties Limited 09431282
Eastwood Builders Limited 09135241
Fox Design And Construct Limited 09493437
Longford Construction Limited 09620573
Monro Homes Limited 04680501
M S Construction and Joinery Limited 08771556
Prism Architectural Limited 04017047
Members Voluntary Liquidations
A & A Construction Group Limited 02551724
Duffield Homes Limited 09666771
Signature Homes (Southern) Limited 09366118
Petitions to Wind Up
BDC Aggregates Limited 10121695
Holmes Construction (Cumbria) Limited 10191432
Winding Up Dismissal
UK Steel Fabricators Limited 08437203
Winding up orders
Beasons Construction and Development Limited 07665477
Perrin Construction Limited 04363753
Pochin Construction Limited 00396388
Purple Development Homes Limited 11621690
FOOD AND DRINK MAKERS
Compulsory Liquidators Appointed S 136
Manchester Food Traders Limited 05559270
Creditors’ Voluntary Liquidation Deemed in Consent Meetings
Fast Food Traders Ltd 07556638
Handsome Foods Limited 08789655
Hunters Fisheries Limited 11076852
Maryam Foods Limited 12430929
Peoples Coffee Limited 09855202
Liquidators Appointed
Best Milk Limited 11429371
Chaudhry Foods Limited 09157570
Foodco UK Limited OC301010
Herbies Pizza Woking Limited 09762076
IG Pizza Limited 12147437
MUB Foods Limited 12369748
Ruby Mae’s Diner Limited 10707942
Wardour Foods Limited 05575730
Members Voluntary Liquidations
Selby Salads Limited 04204258
Spice Bread Limited 07830223
The Good Food Company of Harefield Limited 02344092
Petitions to Wind Up
G Lawrence Wholesale Meat Company Limited 01084692
Winding up orders
The Meat Company (Sussex) Limited 11974869
HOSPITALITY, TRAVEL, EVENTS AND ALLIED INDUSTRIES
Administrators Appointed
Alexander (Gatwick) Limited 00965062
Club La Costa (UK) PLC 03123199
Greenbrow Social Club Limited IP19117R
Walworth House Pub Limited 10046639
Creditors’ Voluntary Liquidation Deemed in Consent Meetings
Canal Taverns Limited 12338520
Event Exhibition Services Limited 05169724
Foodafayre (UK) Limited 04005117
The Little Gloster Restaurant Limited 09211406
Toastie Taverns Limited 10327504
Travel Kings Limited 06537441
Liquidators Appointed
Brand Inns Limited 09184529
Bristol prosecco Bar Limited 11299900
Clark Taverns and Inns Limited 10116390
DDP Events Limited 07792175
Farmers Arms (Wilmslow) Limited 10169840
Independent Coach Travel (Wholesaling) Limited 01867070
Indian Garden Gloucester Limited 08082496
Myriad Travel Limited 06116398
Olive Tree Brasserie Preston Limited 09075790
Paragon Hospitality (Manchester) Limited 12027826
Sam Smith Travel Limited 03870414
Shepherd Cox Hotels (Darlington) Limited 09867021
TDB Entertainment Limited 08707912
Top Travel & Tours Limited 10707657
Travel Etc Limited 03756772
Members Voluntary Liquidations
Holiday Inns Of America (U.K.) Limited 00891885
Plymouth Hotel Holdings Limited 10816545
London City Airport Jet Centre Limited 02120138
City Airport Development Company Limited 03113096
Tourico Holidays UK Limited 07194495
Unique Travel Representation Limited 09630746
Petitions Dismissed
Nite Stop Limited 03018778
Petitions to Wind Up
Billion Lenny Events Limited 11636107
LOGISTICS AND ALLIED INDUSTRIES
Administrators Appointed
Panalpina World Transport Limited 00357697
The Wheel Company (North East) Limited 09051661
Creditors’ Voluntary Liquidation Deemed in Consent Meetings
C.C.T. Logistics Limited 02878795
D Chauffeurs Limited 06984645
Dutch Logistics Limited 09443819
Edcommercials Ltd 11093438
F F Shipping UK Limited 12473870
Falcon Direct Limited 11453591
Kiazen Transport Services Limited 08126641
M.K.W. Transport Limited 09753350
Rossay Logistics Limited 10308078
UK Transport Solutions Limited 11768249
Yorkshire Sameday Limited 12011113
Liquidators Appointed
Fast Despatch Logistics (Glasgow) Limited 11622201
Fast Despatch (Leicester) Limited 11621997
Fast Despatch (Leeds) Limited 11609458
Fast Despatch (Luton) Limited 11610075
Fast Despatch (Weybridge) Limited 11613491
Fast Despatch (Stoke on Trent) Limited 11610210
Fast Despatch (Worcester) Limited 11610188
Fast Despatch (Maidstone) Limited 11612802
Fast Despatch (West Drayton) Limited 11613609
Fast Despatch (Swansea) Limited 11613444
Ferys Logistics Limited 11712215
GH Transport Limited 11769859
NG Logistics Holdings Limited 11293565
Performance Logistics UK Limited 09634456
Soul Logistics Limited 11022104
Truck And Trailer Services (Telford) Limited 06813447
UK Transport Solutions Limited 11768249
Warburton Plant and Haulage Limited 09697491
Members Voluntary Liquidations
Nutfield Car & Commercials Limited 04833802
Stobart Transport & Distribution Limited 05907280
Worldwide Digital Distribution Limited 04447743
Petitions to Wind Up
J Automotive and Development UK Limited 12227327
P Young Transport Limited 04869024
Winding up orders
DPB Transport Limited 10965610
LV Distributions Limited 11892823
Net Driver Limited 11881732
MANUFACTURING
Administrators Appointed
Form Manufacturing Limited 09462616
Fruehauf Manufacturing Limited 07176536
GBM-Manufacturing Limited 01284029
Compulsory Liquidators Appointed s 136
Oso Polymers UK Limited 11167768
Creditors’ Voluntary Liquidation Deemed in Consent Meetings
Dowdeswell Engineering Company Limited 01007286
Refine Garment Processing Limited 10941759
Liquidators Appointed
Forever Textiles Limited 10975106
Jhj Sheet Metal Limited 09846665
Mark Woolley Engineering (MWE) Limited 11064379
Members Voluntary Liquidations
Streetwise Fabrications Limited 06652243
Petitions to Wind Up
AG Safebooths UK Limited 09619365
Winding up orders
Furniture Production Limited 10958376
Oakhurst Engineers North West Limited 11354777
PRINTING AND ALLIED INDUSTRIES
Administrators Appointed
24 Live UK Limited 08433977
KEO Films Limited 03138064
KLT Communications Limited 11059534
Administrators Meetings Para 51
Monument Paper Bag Company Limited (The) 00481099
Creditors’ Voluntary Liquidation Deemed in Consent Meetings
Adlestrop Creative Platform Limited 12059603
Aventor Design Limited 04557090
Boom Advertising Limited 11769873
Elmley Sales & Marketing Limited 10607048
Grand Design London Limited 09024197
Ian Rogers Media Limited 11366945
Sixth Story Creative Limited 07451857
TES Media Group Limited 08704040
Waltham Print Limited 09904745
Liquidators Appointed
Adlestrop Creative Platform Ltd 12059603
Apple Graphics Uk Limited 10390034
Boradside Posting Services Limited 04304382
Clinton Smith Design Limited 05859993
Colour Rite Limited 05853308
Creative Group Inc Ltd. 10868477
Fam Media Limited 12161783
Four Four Studio Limited 11892103
Grand Design London Limited 09024197
Hallam Signs & Graphics Limited 09520982
H K Packaging Limited 11853663
Hilton Publicity Limited 10424957
Image Star Creative Solutions Limited 11456909
LCE Architects (UK) Limited 07491229
McLaren Marketing (Yorkshire) Limited 04223683
Mint Copy Limited 08945356
Mountain Paw-Print Limited 07617318
Platform Press & Publicity Limited 07864344
SA Marketing Solutions Limited 08986721
Soho Post Production Limited 08848965
TCE Productions Limited 08906321
TES Media Group Limited 08704040
Time Design Limited 11925131
TMS Publishing Limited 11002243
Vanadu Limited t/as First Point Print 02562027
Villiers Forbes Design Limited 05419711
Waltham Print Limited 09904745
Members Voluntary Liquidations
BOHL Publishing and Consulting Limited 09812398
By Design (UK) Limited 06019413
Ink Studio London Limited 08442694
JCA International Sales Promotion Services Limited 03427899
MB Designs Limited 09580795
PPS Media Limited 03165439
Smudge Media Limited 10251647
Petitions Dismissed
Petitions to Wind Up
Aequitas Packing (UK) Limited 08913537
Winding Up Dismissal
Winding up orders
One Space Media Limited 06741203
Strata Shopfitting Solutions Limited 08201475
RETAIL, WHOLESALE AND ALLIED INDUSTRIES
Administrators Appointed
AMG Office Furniture Limited 05911748
Clement Browne Limited 07184480
Dream Fitness Limited 08671445
Pheasant Clothing Limited 03504842
Administrators Meetings Para 51
Clement Browne Limited 07184480
Compulsory Liquidators Appointed s 136
Your Car Solutions Limited 10398386
Creditors’ Voluntary Liquidation Deemed in Consent Meetings
Country Kitchen Superstore Limited 12189896
The Stamp Shop Limited 07884938
Liquidators Appointed
Blue Retail Ltd 05309196
Dorothy Perkins Retail Limited 01716523
Emmanuel Stores Limited 07328449
Fencepost Trading Limited 12038217
Hot Yoga Sheffield Ltd 08702535
Top Girl Fashions Limited 03100094
Miss Cute Fashion Limited 09190134
National Wholesale Limited 12159790
Members Voluntary Liquidations
West End Cold Stores Limited 02939740
Petitions to Wind Up
HW Retail Limited 08269584
Winding up orders
Golf Depot Limited 02995248
VARIOUS INDUSTRIES
Administrators Appointed
Sumatra Copper & Gold PLC 05777015
Ockbrook School 05086591
Administrators Meetings Para 51
Essex County Laundry, Limited 00140030
Compulsory Liquidators Appointed s 136
Lordrite Wooden Floors Limited 06599600
Creditors’ Voluntary Liquidation Deemed in Consent Meetings
1ST Call Locksmiths Limited 07021894
Wildcard Payment Services Limited 12041135
Liquidators Appointed
Beverly Hills Pet Club Limited 08477685
Blagreaves Care Home Limited 06478523
Enaam Motor Sport Limited 07166728
Evergreen Education Limited 11363383
Football Survivor Limited 1085655
Phone Surgery Limited 11343414
Professional Railway Driving Services Limited 10061742
Unique Parking Limited 09821330
Members Voluntary Liquidations
Nigel Mansfield Limited 11030944
Practical Mediation Solutions Limited 09215018
Skegness College of Vocational Training Limited 01731248
Westminster Local Education Partnership Limited 06458328
Wyevale Garden Centres Capital Limited 07942713
Petitions to Wind Up
Addington Equestrian 2019 Limited 11294806
Winding up orders
Sunbeds Services Limited 11800386
Types of Insolvency
Administration
Administration applies to limited companies and partnerships and is intended to get the company out of trouble and trading again if possible. Administrators can be appointed to a company that is unable, or is likely to become unable, to pay its debts. They can be appointed by the courts (on application from a creditor, directors or partners), the holder of a qualifying floating charge over the assets of the business, or the company or its directors. An administrator's primary goal is to rescue the company as a going concern. If this isn't possible, the administrator will try to get a better result for the creditors than would be possible if the company was wound up. If neither of these is possible, the administrator will sell the company's property to make at least a partial payment to one or more secured or preferential creditors, such as employees or the bank.
Administrators Meetings Para 51
This statement by the administrator of his proposals must be accompanied by an invitation to an initial creditors' meeting (Sch B1, para 51(1)).
Bankruptcy
This can only apply to individuals (including sole traders and individual members of a partnership). Bankruptcy petitions may be presented to the court by the individual, by creditors who are owed £750 or more, or by the supervisor of an individual voluntary arrangement. A bankruptcy order is made by the court.
Company Voluntary Arrangement (CVA)
A company comes to an arrangement with its creditors to pay the debts in full or in part over time. A CVA begins with the company (or its adviser) drafting a formal proposal at a Creditors' Meeting to pay part or all of the debts. If the proposal is accepted by the creditors, the arrangement will become legally binding and the directors will retain control of the company.
Compulsory Liquidation
This is the winding up of a company or a partnership by a court order (a winding up order). A petition is normally presented to the court by a creditor stating that he or she is owed a sum of money by the company and that the company cannot pay.
The Official Receiver becomes liquidator when the order is made but an Insolvency Practitioner will be appointed to take over if the company has significant assets. The liquidator's role is to realise the company's assets, pay all the fees and charges arising from the liquidation, and pay the creditors as far as funds allow in a strict order of priority.
Compulsory Liquidators Appointed S 136
When a winding-up order has been made, the Official Receiver is initially appointed as liquidator (section 136, IA 1986). The company's creditors and contributories may appoint another individual, who must be a registered insolvency practitioner, to act as liquidator (section 139, IA 1986). More than one liquidator can be appointed to act jointly.
Creditors' Voluntary Liquidation
Here the shareholders pass a resolution to wind the company up without the need for a court order. A Creditors' Meeting is held to nominate the appointment of a liquidator and consider a statement of affairs. Creditors can appoint a committee to work with the liquidator, whose role is to realise the company's assets, pay all the fees and charges arising from the liquidation, and pay the creditors as far as funds allow in a strict order of priority.
Creditors' Voluntary Liquidation Deemed in Consent Meeting
Creditors are now 'deemed to have consented' to a decision or resolution if 10% of creditors (by value) have not objected to it. In other words, if objections are not received by the specified decision date, creditors are 'deemed to have consented' to the decision or resolution.
Individual Voluntary Arrangement (IVA)
An individual comes to an arrangement with creditors to pay his/her debts in full or in part over time as an alternative to bankruptcy. The arrangement is set up by a licensed Insolvency Practitioner who will put it to a meeting of creditors. If the proposal is accepted at the meeting, the agreement reached with the creditors will be legally binding. An Interim Order is sometimes issued by a court and will immediately protect the debtor from any legal action by creditors.
Petitions to Wind Up
A winding up petition is a legal notice put forward to the court by a creditor. The application, in effect, asks the court to liquidate the company as they believe the company is insolvent. Proceeds of the liquidation can be used to pay back creditors.