What stories have happened this week?
Here’s your handy weekly round up of all the business and insolvency stories from the past week that you might have missed.
Amigo Loans is winding down its operations after struggling to gain the capital needed to execute its scheme of arrangement.
They will stop lending with immediate effect and will pursue an orderly wind down with the result that all surplus assets will then be transferred to scheme creditors. This is expected to take approx. 12 months during which time the existing loan book will continue to be collected.
Amigo Loans Chief Executive Danny Malone said: “This is a very sad day for all our employees who have worked extremely hard to address historic lending issues and rebuild a new Amigo, and for our shareholders and wider stakeholders who have supported us.
“It’s also a sad day for creditors due redress who will now receive a lower level of cash compensation than they would have had the new business conditions been satisfied.
“We appreciate this is extremely difficult news for our employees and our shareholders but, after full and careful consideration of all further options available to us, we do not believe there is another viable route forward.”
A large bike distributor and retailer based in Derby has gone into administration with the loss of 103 positions.
Moore Large was a major importer and wholesaler of bicycles, accessories, cycle clothing and components.
A spokesperson for the business said: “Between inflation, exchange rate fluctuations, dampened consumer demand and supply chain issues, Moore Large & Co faced significant and sustained challenges.
“Despite the directors’ efforts to save the company, crucial investment couldn’t be secured. Unfortunately, the financial state of the business meant that it could not keep trading.”
Sevenoaks/Edenbridge leisure centres
Two leisure centres in Kent at Sevenoaks and Edenbridge have been forced to close after the company running them went into liquidation.
Sencio Community Leisure stopped trading with immediate effect and is being liquidated. They also operated Lullingstone Park Golf Course in Orpington which has also had to close.
Directors realised that Sencio could no longer meet its financial liabilities for March so had no other option due to rising liabilities including energy costs.
Sevenoaks District Council are now seeking a new leisure operator to take over the management and operations of the businesses.
Harrogate based telemarketing company Amvoc has gone into administration and closed their offices blaming outstanding Covid era debts.
145 positions have been made redundant as a result.
The business was founded in 2010 growing rapidly and eventually including a roster of clients including BP, Barclays, Virgin Media, Leeds Beckett University and both the Conservative and Liberal Democrat political parties.
A statement from the business said: “With regret Amvoc has been forced to cease trading with immediate effect due to financial difficulties.
“We are in the process of contacting all staff, clients and partners to inform them of the situation and provide further information. We apologise for any inconvenience or disruption this may cause. We are committed to minimising the impact on our stakeholders as much as possible.”
Circular 1 Health
A Manchester based Covid testing business has gone into administration with the loss of 40 positions.
Circular 1 Health was operating in Manchester and Cumbria from its Didsbury headquarters.
During the Covid pandemic the business responded to the needs of other critical businesses that needed to remain operational through the pandemic.
A statement from the business said: “The directors worked closely with the company’s stakeholders and have explored all options to address the long term viability of the business.
“Unfortunately, new contracts and an injection of funding have not materialised and reluctantly the directors have had no option but to place the company into administration.”
Oxfordshire based British Honey Company (BHC) best known for producing honey-based products including craft gins has revealed plans to go into administration after failing to secure a sale of the business or long term funding for it.
The company employs 80 people at a factory and warehouse that started as a honey producer in 2014 but expanded into producing flavoured spirits.
A statement from the company said: “The board made clear that further funding would need to be secured early this year, which the company has attempted to identify since this date but it has proved extremely challenging, with no offer of funding support being forthcoming to date.
“Significant cost savings have been made in the business in order to conserve cash. Notwithstanding these cost savings, BHC will require further funding by the end of March 2023. Regrettably, the board has concluded that it is required to take the necessary steps to preserve value for creditors.”
The owners of the Antonine Shopping Centre in Cumbernauld have gone into administration.
The 200,000 sq ft mall opened in 2007 serving more than 3.5 million customers a year.
Bridges Antonine is the name of the business and says that it will be business as usual for tenants while the management team and agents look at selling the facility.
A 90-year-old haulage company has entered insolvency with 70 positions being made redundant with immediate effect.
Kenyon’s Haulage Ltd was based in Blackburn and first opened in 1935.
A statement from the business confirmed that administrators had been appointed and that “due to the financial position of the road haulage and warehousing entities, both companies ceased to trade with the appointment.
“Some remaining staff have been retained by the administrators to assist the administrators with their duties and wind down operations.”
Child’s Play Nurseries
Three nurseries in Hartlepool, Ferryhill and Seaham run by Child’s Play have closed with immediate effect following the company going into administration.
Director Laura Davies said: “I am sorry beyond words for the abrupt, awful ending. I truly never anticipated or wished this. I’m still in shock and numb. This is so raw and upsetting for us all.”
A formal statement from the company said: “We are deeply saddened we have had to make this decision and for any inconvenience this may cause to parents/carers.
“The past two years have been an increasingly difficult time for small businesses dealing with the aftermath of the Covid-19 pandemic, the current cost of living crisis, the chronic underfunded so called “free” hours and spiralling energy costs and unfortunately our business is no different.
“Despite our best efforts to deal with these challenges over recent years we have been unable to overcome them and our business is no longer financially sustainable. It has been a privilege caring for all the children who have spent time with us over the years.”
The decision means that 65 workers have been made redundant.
Whether the budget this month has offered any help for business owners or directors, the majority are still entering Spring with trepidation as interest rates continue to rise among other bills and debts.
No matter what footing your company finds itself on, we offer a free initial consultation for any director who wants to know in more detail about any alternative options they might have to strengthen their business over the coming weeks and months.
They might not need to deploy them immediately but having a better understanding of what is possible will give them some ideas about how to improve their fortunes over the rest of 2023.