Find out about Cineworld entering administration and more
While a lot of people are looking forward to their summer holidays, many of us are still working hard to make sure we can enjoy it without having to worry unduly about our business while we’re away.
But if you get a quiet moment then you can catch up on all the important and interesting business and insolvency news stories you might have missed from the past seven days.
You can also read about why interest rates and inflation are so high; why education businesses have learned some hard lessons since 2019 and our investigation into why there are more liquidations now than there were in the whole of the pandemic affected years.
The cinema chain operator Cineworld is going into administration and suspending trading in its share on the London Stock Exchange as part of a restructuring plan to reduce its debts.
The parent company of the world’s second largest movie theatre chain operator filed for bankruptcy protection in the US in September so is now following suit here.
A statement from the business said that administrators would move all assets into a new wholly owned subsidiary called Crown which would be owned by a newly incorporated company, controlled by the group’s lenders, with Cineworld ceasing to have an interest in any of the parties.
The business operates 128 theatres in the United Kingdom and Ireland and over 700 worldwide.
Country Bumpkins Nursery
A nursery in Ardersier, Scotland has gone into liquidation after a poor care inspection report.
The report into Country Bumpkins Nursery formed after an unannounced inspection found children were put at “serious risk”.
Founded in 2012, the nursery was registered to care for up to 72 children but inspectors found a lack of consistency regarding the administration of medicine, dirty outdoor equipment and inadequate nappy changing facilities.
They said: “We found that there was no effective audit of staff’s registration with professional bodies and, as a result, a member of staff was working with children whilst not appropriately registered. This had the potential to put children at serious risk.”
Inverness Sheriff’s Court has appointed provisional liquidators.
A luxury holiday lodge development with stunning views of Roseberry Topping just outside of Middlesbrough has gone into administration.
Roseberry View Lodge Retreat made the announcement and admitted that it had been necessary to cancel some events such as weddings that had been booked months ago.
First launched in 2019, the venue hosted 28 events a year as well as hundreds of guests staying at the former strawberry-picking farm. Further improvements that would have allowed larger and more events to be held were thrown out by Hambleton Council in 2021.
A statement said: “The business will continue to trade under the supervision of administrators while they seek to find a buyer for the business and assets of the company.
“The holiday park will continue to operate as usual. Existing bookings will be honoured and new bookings will continue to be accepted. Unfortunately, after careful consideration, due to commercial and licensing issues, it has been necessary to cancel some events.”
Ocean Shipyard Limited
A Hampshire boat builder has ceased trading and gone into liquidation with the loss of 29 positions.
Ocean Shipyard Limited was only incorporated in December 2021 but faced cash flow difficulties from January this year when their major investor withdrew their support.
A statement from the business said: “Unfortunately, this company’s cash flow situation meant it was left with no alternative but to close. Liquidators are now working to realise the best return possible for our creditors.”
Play Place Pantry
A popular children’s soft play centre in Middlesbrough is closing with directors admitting the current financial climate meant the team could “no longer hold on” and brought forward the official closing date as they were “not making enough to pay staff or bills”.
A statement posted on Facebook said: “We had hoped to make it another couple of months but sadly we are not making enough to pay our staff, bills or anything else.
“With it being summer we are losing custom to the weather and this means our doors need to close so will not be open again for general play, although all private hires and events will go ahead until the end of July.”
The owners of Hotter Shoes are considering going into administration as part of a wider restructure following a drop in revenue and failure to attract new investment.
The Unbound Group announced that it had entered into a formal sales process after carrying out a strategic review citing a more difficult trading environment in light of rising inflation and “a volatile and unpredictable consumer environment.”
The company had previously launched a company voluntary arrangement (CVA) in 2020 which resulted in the closure of 46 stores.
Ayr Ice Rink
The famous Ayr Ice Rink is to close later this year due to an unprecedented hike in energy costs according to Ayr Curling Club who run the venue.
They were faced with a rise of 110% at the beginning of October taking the average cost of daily electricity use from £419 to £880 or £153,000 in energy costs alone in 2023.
Liz Goldie, chair of Ayr Curling Club, said: “On a normal year we aim to just break even and therefore, this increase in our biggest operating cost means that we would have to generate more than £150,000 in additional income just to cover our energy costs never mind wage increases and inflationary increases on all the other expenses of running an ice rink.
“It simply cannot be done and so, with our expenditure going to exceed our income by £75,000 in the current financial year and double that every year thereafter. We have no alternative other than to cease trading and to seek a Members Voluntary Liquidation (MVL).
A notable Scottish fashion brand much loved by celebrities including the Princess of Wales, Michelle Obama and Anna Wintour is going into administration.
Christopher Kane said that their board has filed a notice of intention to appoint administrators noting “this difficult decision has been reached to give the company sufficient time to implement a rescue plan.”
Retail analysts said that the brand was relying too heavily on pricey collections which “wavered in popularity and visibility due to the pandemic’s effect on much of the luxury fashion industry.”
The business, founded in 2006, was also forced to shutter stores and lay off employees during Covid which further wounded the brand over the longer term.
A statement said: “This difficult decision has been reached to give the company sufficient time to implement a rescue plan with key stakeholders being notified.
“A period of accelerated marketing activity will now follow, with a view to locating potential interested parties to either refinance the company’s existing debt or alternatively locate a purchaser for the business and assets.
Tailored Fire and Security
An Oldham based fire and security company with Tesco as one of its clients has gone into administration.
Tailored Fire and Security was founded in 2000 and employs 100 staff providing fire and security advice and services not only from their UK offices but from regional hubs in Turkey, Italy and Ireland.
A timber yard and sawmill near Southampton is closing with the loss of 30 positions.
BSW Timber acquired the business in 2014 and despite investment and improvements to efficiencies, directors admit that they have no choice to close as a result of “inconsistent long-term log supply and a general poor market.
“Having reviewed the long-term forecast, the situation is unlikely to change and the mill will cease to become commercially viable. We are therefore proposing to take the difficult decision to cease operations at the site and commencing a redundancy consultation which will affect all employees at the site.”
One of Scotland’s largest seaweed farmers and suppliers is going into administration after suffering from “severe” working capital issues.
Mara Seaweed has seen the withdrawal of funding for a committed expansion programme which has led to “unsustainable cash flow problems with administration being the only option for the business.”
Founded in 2011 as the Celtic Sea Spice Company, the business rebranded as Mara Seaweed in 2013 and pioneered the harvesting, processing and manufacture of a wide range of seaweed-based seasonings.
It operated its own purpose built factory in Glenrothes and supplied Tesco, Ocado, Amazon and several other independent stockists in the UK.
The brand also won a number of awards and its products regularly featured on TV shows such as the Great British Bake Off.
12 positions will be lost as a result.
A statement from the business said: “Mara Seaweed had developed a very high profile and outstanding reputation within the food industry for its innovative approach to harvesting and for the quality of its products.”
So whether you’re rushed off your feet or counting down the days and hours until you get to a beach, this is the perfect time of year to start planning what the rest of 2023 could look like for your business.
Depending on your goals, our expert advisors will look at where your company is now and what choices you have available to you to best deliver the outcome you desire..
The most important step is the first one though so make your appointment today.