All the stories you might have missed from April 3rd to 6th
Here’s your handy weekly round up of all the business and insolvency stories from the past week that you might have missed – a day early for Easter!
So whether it’s news about businesses going into administration, liquidation or restructuring their debts with a CVA – you will find them all here from the past six days.
Intelligent Steel Solutions
Peterlee based structural steel supplier and installer Intelligent Steel Solutions is going into creditors voluntary liquidation process.
The business provided cold-formed structural steel to construction projects across the UK.
A statement from the business was released that blamed the decision on “the unprecedented and combined impact of the aftermath of Brexit, Covid-19, all round rising costs and the onset of a recession”.
Riverside Studios
The 45-year-old, famous West London arts centre situated on the Thames has announced it will enter administration due to a combination of “eye watering” energy bills and historic debt incurred by a recent redevelopment.
The building began life as a Victorian engineering works but became a film studio in the early 1930s including being used by the BBC in from 1954 to 1974 where shows like Dr Who and Dixon of Dock Green were filmed there.
It was closed for redevelopment between 2014 and November 2019 when it had to close again due to the Covid-19 outbreak.
The three theatres, TV studios, cinema, bars and restaurant in the complex have contributed to the 300% increase in energy costs.
Greg Parston, chair of the board, said: “Launching the new Riverside Studios with such a huge burden of inherited debt from the building development was never going to be easy. It was our fervent hope that careful business planning – coupled with the support we received from the government’s culture recovery fund and Triodos Bank during the pandemic – would put us in a healthier cash flow position.”
He confirmed the studios would be trading as usual while it entered the administration process with trustees stating a preference for continued charitable ownership in order to serve its role as a community arts venue.
Signature Gifts
A Dumfries and Galloway gift business has announced it is going into creditors voluntary liquidation with the loss of 56 positions.
Signature Gifts was formed in 2002 and specialised in personal gifts with a manufacturing base in Bladnoch, Dumfries which will close.
It is understood that the owners had sold a connected company earlier that had removed business from Signature Gifts which had made their financial position untenable.
Douglas Arms Hotel
A traditional tourist hotel in Banchory has gone into liquidation blaming surging energy prices.
A statement released by the owners of the Douglas Arms Hotel said: “Following on from the problematic and difficult trading conditions, for two years, during the Covid pandemic, the significant increase in energy costs, pre-Christmas 2022, made the trading business unsustainable which signalled the decision to place the business into a voluntary liquidation process.
“The increase in energy costs was the final-straw for us.”
West End Windows
A Bristol based windows and door manufacturer has gone into liquidation after 48 years of continuous trading.
West End Windows employed 17 staff who have been made redundant as a result.
A spokesperson for the business said: “Despite the company having an excellent reputation, they had suffered in recent times due to significant increases in material costs, the Covid-19 pandemic and a loss of customers due to similar issues.
“Sadly it was not possible to keep the company operating as a going concern and there was no alternative to liquidation. The focus now is to realise the assets of the company in order to deliver a return to creditors.”
Thrive GB
ThriveGB, A large brand concession store on Chester Retail Park has unexpectedly closed and gone into liquidation with the loss of three positions.
It stocked a range of goods from various British manufacturers with ThriveGB taking a commission on all sales.
A statement was issued from Rebecca Menaged, managing director of ThriveGB, which said: “We have built a concept store that has been received well by customers.
“We have been hampered due to the lack of footfall, escalating costs along with extended Covid-19 lockdowns and consumer uncertainty has meant we have reluctantly had to close the doors and will be liquidating the company as a result.”
Balmanno House
One of the UK’s longest continuously running care homes has gone into administration.
Balmanno House in Glasgow is able to trace its roots as a care and convalescence home back more than 200 years but due to significant cash flow issues due to increased operating costs has made the inevitable decision.
Management confirmed the business will undergo a managed wind down while assisting residents with new arrangements.
Chairman Allan Carrick said: “Sadly the unsustainable costs and challenges affecting the care sector in Scotland have made it impossible for Balmanno House to continue providing the high standard of residential care which has for so long been our hallmark.”
A further statement from the business noted that the challenges facing care home operators are well documented with the most significant being the recruitment and retention of nursing staff.
“The increased cost of providing nursing staff, added to the sharp rise in the costs of energy and food, has resulted in trading losses. Despite the best efforts of the Directors to control operating costs and to increase revenue it has sadly not been possible to return the business to profitability.”
Loscoe Chilled Foods
Derby based Loscoe Chilled Foods, a meat company subject to an ongoing FSA National Food Crime Unit investigation over alleged incidents of food fraud, has ceased trading and appointed administrators.
The company was involved in the unit’s Operation Hawk probe that looked at the passing off of imported beef as British in 2021. 120 posts have been made redundant as a result.
A brief statement from the company said it had taken the decision “as a result of customers withdrawing their orders” following the suspension of its BRCGS certificate which is the food safety standard certificate.
Three directors had been arrested following a raid on the premises by police and Trading Standards but had been released under investigation late last month in connection with the case.
Bates of London
One of London’s long-established independent laundries – Bates of London – has closed down and gone into administration for the second time in two years.
Managing director Matthew Pantlin said: “We were hammered by Covid, with no help from the government or our landlords and then Ukraine happened and utilities, most particularly gas, went through the roof.”
He added that Bates then lost work to a major national chain that had undercut them when Bates had to increase their prices to cover costs.
“It was a vicious circle. We needed cash for stock and we needed customers to generate cash to purchase the stock. I decided to leave it until the end of February to see how things went and then I had no alternative but to make the decision to go into receivership.”
In 2021 the company entered a pre-pack administration and management was able to buy it back under the process and keep it going.
Bonar Yarns
A 120-year-old Scottish yarn manufacturer Bonar Yarns, based in Dundee has gone into administration due to cash flow problems.
The business specialises in polypropylene carpet backing yarns which are used in a variety of manufacturing processes from sustainable flooring to artificial sports turf.
A statement issued from the company said: “Bonar Yarns Limited can trace its history back to the foundation in 1903 of the famous Low & Bonar business that specialised in the manufacture of technical textiles.
“We will continue to trade the business in the short term whilst marketing the business and assets for sale with immediate effect.
We’re more than a quarter through 2023 already but April already has some nasty surprises waiting for business owners in the form of rising business rates, corporation taxes and other bills.
So no matter what specific challenges your company faces, after a free initial consultation with one of our expert advisors, you will have a better idea of your options than before and a clear path ahead with no misconceptions.