A charity patronised by HM The King goes into administration and more
This has been another busy week – so busy that you might have missed many of the most interesting and important business and insolvency news stories from the past seven days.
So if you want to know why Members’ Voluntary Liquidations have risen to post-pandemic highs; why accountants should be the first line of defence against cyber criminals; why Winding Up Orders and Petitions have risen to decade high levels and why directors should tackle their financial difficulties now before summer arrives then you can read all these stories and more at our advice centre page.
Scottish Institute of Theatre, Dance, Film & Television
A prestigious Scottish performing arts has ceased trading with immediate effect and gone into voluntary liquidation.
The Scottish Institute of Theatre, Dance, Film and Television closed last week leaving students scrambling to continue their studies after an order was passed at Livingston Sheriff Court.
This follows a winding-up petition being presented by creditors on March 28th.
Previously known as the MGA Academy of Performing Arts, the school was renamed by the new owners last year when Irish production house Silver Rock Studios took over. It was accredited through Bath Spa University.
Renugen
A renewable energy company based in Kent has been closed down after an Insolvency Service investigation found it had failed to deliver orders and not refunded some customers for undelivered products.
Renugen Limited, registered in Canterbury, sold renewable energy products online from £50 batteries to £350,000 wind turbines. The Insolvency Service were able to identify 34 customers who’d paid £74,570 for products that weren’t delivered. Investigators found only £15,265 had been refunded to customers.
Some clients were unable to contact the company and had taken legal action through the county courts to claim refunds.
The company was wound up in the High Court in London this week.
Mark George, chief investigator at the Insolvency Service, said: “There was clear evidence in this case that Renugen Limited was not acting as a reputable business.
“We saw a pattern of undelivered products and a lack of refunds to customers, as well as little or no communication with online buyers and evidence of recent trading. As such, we believe it was in the best interest of the public to shut down this company and ensure any future potential customers don’t suffer the same outcome.”
Renugen Limited filed accounts suggesting that there’d been no trading between 2021 and 2023. However, the company had continued trading during this time including having an active website. Recent complaints from customers about their orders on Trustpilot were also discovered by investigators.
Additionally, investigators found that the company had six business accounts, and at least two had been closed due to what the banks stated were complaints of scams relating to undelivered products. The Insolvency Service also found that the company made 38 crypto asset transactions – unrelated to renewable energy products – from their business accounts, totalling more than £48,000 for which no explanation was provided during the investigation.
Renugen Limited had registered a number of addresses for the company since its incorporation in 2010. The last registered address was in Canterbury but the investigation had previously been registered in Herne Bay but had failed to inform Companies House of any change of registered office after the facility was closed.
Taste of the West
One of the UK’s largest independent regional food groups which has King Charles III as a patron has gone into administration.
Taste of the West had more than 1,000 paying members in the area among food and drink producers, distributors, restaurants, pubs, farm shops and specialty retailers.
Founded in 1991, the Exeter-based organisation’s aim was to “champion food and drink producers in the West Country, as well as all the places that serve and sell them”. They also ran a popular annual awards scheme to highlight achievement.
The company became a community interest company in February this year in a change of structure.
Loveraw Chocolate
A popular Vegan chocolate brand has been bought out of administration in a pre-pack deal to continue giving customers plant-based joy.
LoveRaw was founded in 2013 by brothers Manav and Rimi Thapar, producing dairy-free chocolate that contained no palm oil or any artificial ingredients.
The company’s products were sold in 13,000 outlets across 25 countries and they were listed in the Financial Times’ FT 1,000 list of Europe’s fastest growing companies.
Unfortunately, investment and supplier challenges led to operational disruption and a rapid decline in revenues, which ultimately led to the business appointing administrators in April.
The business was sold to a Smart Organic subsidiary Bettr Food and is being integrated into Smart Organic’s new facility in Bulgaria to leveraging existing infrastructure to enhance efficiency and product innovation.
Yani Dragov, CEO of Smart Organic, said: “We are thrilled to welcome LoveRaw into the Smart Organic family.
“This acquisition aligns perfectly with our vision to offer delicious, health-conscious products that meet the evolving needs of consumers. LoveRaw’s innovative approach and strong brand identity complement our existing portfolio, and we are excited to support its growth and expansion in the UK and beyond.”
Torquay United exit CVA successfully
National League South football club Torquay United narrowly missed out on promotion back to the National League, losing in the play-offs last week but they have had some good news for the future.
They have successfully fulfilled the terms of their Company Voluntary Arrangement (CVA) and have formally exited from administration.
A statement has now confirmed that all tax debts, football and trade creditors are now paid in full, giving the club “significantly more financial freedom”. Completion of the CVA, the terms of which were agreed with creditors as part of the sale of the club in May 2024, concludes the administration process.
The terms of the CVA enabled Torquay United AFC to continue to operate the football club and saw administrators hand over control of the club to owners the Bryn Consortium.
Michael Westcott, co-chair at Torquay United AFC, said: “The formal exit from the administration process marks a significant moment in the rebirth of Torquay United. When we entered administration, we were at the lowest league position in the club’s history and many feared for our future.
“But thanks to the tireless work of our supporters, players, staff and everyone behind the scenes, we’ve not only stabilised but thrived. This season we’ve recorded our highest average home attendances since 1971 and were still in contention for the league championship in the final game of the season. That kind of turnaround doesn’t happen by accident – it’s the result of belief, resilience and unity”.
Hospital Pipeline Installations Limited
A 40-year-old pipeline business based near Glasgow has gone into administration.
Hospital Pipeline Installations Limited (HPI) are based in Paisley with a satellite office in Rochdale and were a leading designer and installer of medical, dental, laboratory and industrial gas pipelines.
The business also provided repair and maintenance services and had built a substantial client base across the construction, dental and medical sectors including several NHS Health Boards.
A statement issued by the directors said: “HPI was a highly regarded specialist in the field of medical gas pipeline installation and maintenance, providing an essential service to the medical sector including hospitals and dental practices across the UK.
“The business was suffering from a number of operational and financial challenges and was coming under mounting creditor pressure.
“The directors sought professional advice on their opinions and ultimately concluded that the company should be placed into administration.
“Sadly, the company plunged into administration due to a marked downturn in trade, rising operating costs and low-margin contracts – all of which contributed to recent trading losses and unsustainable cash flow problems.
“Despite the best efforts of the directors to return the company to profitability, the decision was made to place the business into administration and cease trading to protect the interests of creditors.”
As a result of this 22 staff have been made redundant with immediate effect with three being retained to assist the administrators and safeguard the company’s assets.
Northern Alchemy
An independent local brewery in Newcastle has ceased trading and gone into liquidation.
Northern Alchemy started in a refurbished shipping container in 2014 creating pale ales, lagers and beers for local pubs and their own weekend open tap sessions.
The expanded in 2017 to The Old Coal Yard in Byker which they shared with an event space and helped form The Northern Stronghold collective that saw them and 15 other breweries collaborate on a beer delivery service to combine operations during the pandemic and lockdowns.
The directors issued a statement that said: “It’s with great sadness that at the end of our 10th year of trading, we have to share some sad news about Northern Alchemy.
“As with many others in our industry we’re no longer able to continue creating the innovative and popular beers that we have made over the last decade.
“As our margins are squeezed harder and harder by price increases across the board, we recognise that we cannot continue. Despite our best efforts and our directors pretty much working without recompense during this time, we’ve been unable to navigate a route through these hardships.”
RT Shepherd & Sons
An iconic Scottish bagpipe manufacturer has gone into liquidation after running into insurmountable financial difficulties.
RT Shepherd and Sons have been manufacturing bagpipes and selling chanters and reeds all over the world for over 50 years from their headquarters in Cardenden in Fife.
The founder, Robert Shepherd MBE, passed away in 2019 but the company still had a good reputation.
Directors said the company faced critical cash flow problems and various other factors.
A statement issued by the firm said: “Despite a strong reputation and branding in the bagpipe world, the company faced several challenges over the past few years which unfortunately led to the director’s taking the tough decision to file for a winding up petition.
“The initial priority is to assist all eight employees with their redundancy claims and deal with a large number of stakeholders from across the world. The company’s assets have been bought by a former employee who trades as a bagpipe retailer. They have a unique understanding of the business and are well placed to be able to take on the RT Shepherd brand.”
Astleys
A business that was believed to be the oldest company in Coventry has ceased trading and gone into liquidation.
Astleys was established in 1730 and had been trading for 295 years, specialising in cleaning, hygiene and janitorial products.
A family firm still run by members of the Astley family, a statement from the directors David and Jonathan Astley said: “the liquidation was sparked by various factors including changes to buying habits after Covid.
“We’re proud Astley was one of few independent retailers in the city as there has been a surge in multinational firms in the West Midlands.”
Operational costs were also cited with an increase in rates “increasingly difficult to swallow”.
It continued: “It is with great sadness that the directors of the business have taken the decision to end our relationship with thousands of wonderful customers.
“However, it is time to make this decision whilst we are in the position to be able to withdraw with honour held. We’re conducting a controlled shutdown, ensuring that we pay all our staff , suppliers and other creditors.
“Astleys have not gone bust – we are entering a solvent liquidation.”
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