We’re now into June and the official start of summer even if it doesn’t feel like it.
So before the weather remembers what it’s meant to be doing at this time of year, it’s a great opportunity to catch up with all the important and interesting business and insolvency news from the past seven days.
If you want to know more about why outstanding bounce back loans are leading to more directors’ disqualifications you can find out and read even more articles – all right here.
Manchester Food and Drink Festival
The business behind the famous Manchester Food and Drink Festival that has hosted the likes of Gordon Ramsay, Jamie Oliver and Michel Roux has gone into liquidation after announcing that the event would not be returning this year.
The company was formed in 1998 but has gone into voluntary liquidation due to a “triple whammy” of negative factors including the pandemic and subsequent slow recovery; sponsors pulling out and cash flow issues leaving the directors with “no other choice”.
A statement from the company said: “After 25 years we are pausing the festival this year and we’re taking the opportunity to restructure the trading operations and regroup.
“It has been a tough couple of years for everyone but we are now focusing on plans for the future. These are challenging times for anyone in the food, drink and hospitality sector.
“Inflation in the cost of raw ingredients is creating major dilemmas for business owners in the sector who are becoming increasingly reluctant to continue funding ventures that simply aren’t generating enough revenue to survive.
“Creating the festival is a labour of love and as a small team we wanted to take a breather and regroup ahead of bringing the festival back in 2024.”
Relish Event Catering
A Liverpool based catering company has been voluntarily wound up this month after being unable to reasonably repay their debtors including Liverpool City Council.
A statement from the directors of Relish Event Catering said: “We are proud to have supplied catering services across the North West but due to changes in the market following the pandemic and economic challenges, we made the difficult decision to focus solely on our separate retail business.
“Like every other company during these times, we must review and address financial viability; unfortunately Relish Event Catering Ltd was not financially viable.”
The company also runs retail catering located at several locations around the city including the Royal Liver building and Liverpool Central Library.
The South West’s leading supplier of soft drinks has gone into administration due to stalled growth from the Covid-19 pandemic.
Cuda Drinks was first launched in 2006 and became the South West’s distributor for the national and thrived but when the hospitality industry was locked down during the pandemic the company which supplied Plymouth and all surrounding areas of Devon and Cornwall struggled.
These problems were further exacerbated by subsequent high inflation and worker shortages. These factors and being unable to service outstanding bounce back loans and a CBILS (Coronavirus Business Interruption Loan Scheme) loan culminated in the directors taking the decision to voluntarily liquidate the business.
Lakeland Inns Group
A company that operated five pubs in Cumbria has gone into voluntary liquidation.
The Lakeland Inns Group Limited ran the Black Cock in Broughton, Clarke’s Hotel in Rampside; The Commodore Inn in Grange; The Sun Inn in Ulverson and the Royal Oak in Curthwaite.
Some of the pubs such as The Black Cock Inn will remain closed while others may reopen under new management if deals can be struck.
Rougier Street Developments
A company that planned a new tourism attraction based on York’s Roman heritage has gone into administration.
Rougier Street Developments had hoped to create a new underground Roman museum called Eboracum along with an 88 room aparthotel with 153 new apartments and office space.
City of York Council narrowly approved revised plans for the scheme in October despite concerns about the financial viability of the project.
A spokesperson for the business said: “We are extremely disappointed and saddened that Rougier Street Developments Ltd encountered financial difficulty due to the challenging economic climate.”
Plant and Bean
Owners of the Uk’s largest plant-based meat production facility in Lincolnshire have issued a notice to appoint administrators according to various reports.
Plant and Bean operate the site in Boston with 500 operatives working on the facility when it opened in 2021.
The company defines its mission as: “By designing delicious and healthy plant-based meats and making them accessible to everyone, we can improve global health, the biodiversity of the planet and animal welfare, thereby making a sustained positive impact on the world we live in.”
A Notice of Intention (NOI) is a temporary procedure that will provide a mini insolvency moratorium for ten days but will usually then see a business enter administration or another insolvency procedure.
A broadband supplier that supplied coverage to the Isle of Arran and parts of South Wales has gone into administration.
Broadway Partners will continue to operate and support their 6,500 customers as part of day to day operations.
The company pursued a strategy of building ultra fast full fibre broadband (FTTP) networks over the past 18 months but a range of factors including increased travel and materials costs, high electricity prices, increasing inflation and interest rates meant that it was becoming economically difficult for companies to continue their roll outs.
A business that developed vertical farms for growing leafy green vegetables has gone into administration and is selling the business and its assets.
Founded in 2016, Eider VF were at the forefront of the ingenious idea of vertical farming within the UK but high construction costs, rising electricity prices and reduced demand from customers has proved critically damaging.
The company had secured long term partnerships with leading manufacturers and leafy vegetable suppliers.
An official statement from the business said: “The business entered into administration after a period of challenging trading conditions left it unable to meet its financial obligations as they fell due.
“The business has ceased trading with immediate effect and 17 positions have been made redundant.”
The industry is highly vulnerable to energy price rises as it is heavily dependent on LED lights to encourage growth.
A Bedfordshire based food preparation business has gone into administration less than a year after being purchased by potato business Tuber Group.
MyFresh was founded in 2014 and employed 150 workers at its facility as it supplied freshly prepared produce to the B2B and food service sector but was declared insolvent earlier in the month.
Every single director at each of these businesses will have some regrets about decisions they should or shouldn’t have taken over the previous 12 months or more.
So with this forewarning it makes our standing offer of a free consultation with one of our expert advisors even more attractive.
Depending on their goals for the business, they will be able to review all the options that are available to them which is often more than they think, especially the earlier in the process they engage.
Once they get in touch, we’ll tell them everything and then the rest is up to them.