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Administration Acquisitions News
Tue, 11 May 2010:
Lancashire-based haulage business Macgregor Europe has been pushed into administration after losing a £100,000-a-month contract. The business, which enjoyed revenues of £5m at its peak, has been taken over by administrators at Bury restructuring company Leonard Curtis, who are currently mulling over Macgregor's accounts. A total of 35 employees have been rendered jobless. Its majority shareholder and founder Peter Macgregor called in the administrators and gave the following reasons for the move: "The trading in 2009 was really poor anyway and then one of our major customers gave us notice that they would not be renewing the contract." "We did everything we possibly could to try and retain that contract but we just couldn't do it. To lose that contract was a massive blow." Factors that are affecting hauliers across the board such as the rising cost of petrol and diesel, did not have a significant impact on Macgregor Europe's downfall. The administrative process is ongoing. Trading has ceased and Mr Macgregor is now operating a one-man advisory service to hauliers on moving freight across Europe, u...
[more: Lancashire-based haulage business Macgre...]
Thu, 06 May 2010:
I-level, one of the most prominent digital media agencies in Britain, has been tipped into administration by its bosses after losing a crucial contract for government advertising. It is thought that about £40m - a significant 40 per cent - of the business' sales were derived from the Central Office of Information before the contract was lost. The business has since been won by rival WPP's GroupM despite I-level's efforts, jointly with media agency Starcom, to pitch for the renewed contract in February. Co-founder Andrew Walmsley and group chief executive Stephen Rust have called in Zolfo Cooper to take the administration process in hand. The company is to maintain operations while the administrators assess the financial state of the business and set about seeking potential buyers. The lost contract led to cashflow problems for I-level, which had also failed to secure new funding. Private equity group ECI bought a 60 per cent holding in I-level in 2008 in a deal worth £45m. The media agency was founded by Andrew Walmsley and Charlie Dobres in 1999, and its payroll has expanded over the years to 120 employees. Its clients include the household names Procter & Gam...
[more: I-level, one of the most prominent digit...]
Fri, 30 Apr 2010:
Wiltshire-based Home of Choice has filed a request to be placed into administration after attempts to sell itself failed. The specialist mortgage network company had aimed to sell the business, which would have brought in new investment, enabling it to grow and build upon its broker services. Numerous bids had been placed to buy the firm, with the identification of a preferred bidder. However, the crunch came when Home of Choice failed to secure an extension of its overdraft facility, required to cover payments to brokers and employees. Home of Choice said it had been assured by an investor and its bank that the payments would be made on the 26th of April. A statement made by the company said: "Despite working our way through 2009 and placing the business in a position to be brought by a number of financial services groups, it has been impossible to complete the arrangements... We currently await the appointment of an administrator". Set up in July 2005, the company grew to be the largest of its kind, according to Home of Choice's website. It was created to address the requirements of mortgage intermediaries that were not being supported by ...
[more: Wiltshire-based Home of Choice has filed...]
Wed, 14 Apr 2010:
Amesbury-based organic food producer Pure Organics Limited has entered administration after suffering from severe trading conditions and cash flow problems. About 80 jobs have been lost as a result of the move at the business, which manufactures organic frozen ready meals, meats, vegetarian foods and desserts. Tim Ball from the accountancy firm Mazars has been appointed as joint administrator to the company. He is working to seek a buyer. He commented: "It is very sad to see an independent company fail in this way and it is very much hoped that a buyer can be found for the benefit of its customer base and its creditors." He went on to invite any interested third parties to contact him. Pauline and Gary Stiles set the business up in 1996 in order to provide healthy alternatives to the "mass marketed convenience food aimed at children". The concept was inspired by the 'no additives' diet required for their daughter who was diagnosed with autism. The company has won a handful of awards over the years including the LACA Outstanding Supplier of the Year Award in 2005 from the Local Authority Catering Association, and the Sausage Award for the South of England for services to the British Sausage in 2004 from the...
[more: Amesbury-based organic food producer Pur...]
Mon, 12 Apr 2010:
Leeds-based online wine business Mardenis Ltd has entered administration after the director signed a notice of intention to appoint Armstrong Watson as administrators, as of 26 March. Mardenis Ltd, which operates Surpluswine.co.uk, provided substantial savings on fine wines and champagnes. The director, Dennis LeFrancq, is not currently operating Mardenis Ltd as a result of running into financial difficulties, according to reports. This came as a surprise in light of Mardenis' balance sheet filing that shows the firm closed last year with profits of £1.7 million, up from just £7,000 the year before. The administrators say they will now examine the firm's accounts. LeFrancq is now thought to be out of the country, while angry customers of the wine retailer claim they have paid up to £30,000 for wines and champagnes that have not been delivered. He is also thought to owe some £30,000 in rent on his Leeds city centre restaurant. A message on the Surpluswine.co.uk website says that "due to the response to our sale we are currently revising our inventory and with new stock arriving soon, we will s...
[more: Leeds-based online wine business Mardeni...]
Fri, 09 Apr 2010:
Developer Manyoo LLP has fallen into the administration of KPMG after failing to finish building its major residential project on Salford Quays. The firm is a joint venture between Leeds-based developer KW Linfoot, which is already in administration, and London-based Yoo Capital. The company has already gathered £3.5 million worth of deposits from people who wanted to buy one of the 1,036 flats being built. The deposits were paid on 264 of the flats over two and a half years ago, with each deposit totalling between £8,000 and £20,000. The scheme itself involved the construction of four 26-storey towers. The project was due to be completed in early 2011 and apartments were to be designed by Jade Jagger. However, instead, half the site is now owned by the Bank of Scotland and the other half was given over to the receivers last year and is being operated as a car park. Investors who have already paid deposits have been hoping to force the firm into liquidation so that had a better chance of seeing their money again. The administrators were calle...
[more: Developer Manyoo LLP has fallen into the...]
Wed, 31 Mar 2010:
Motor insurer Quinn Direct, part of Ireland's biggest insurer Quinn Insurance Limited, has been placed into administration. The UK business, which has 390,000 policyholders, specialised in low-cost policies for young drivers. Quinn policyholders in Britain will remain covered, it has been assured by the Financial Services Authority. The FSA said that UK customers "can continue to make claims and should continue to pay direct debits and premiums in the normal way." The insurer is to stop accepting any new business in Britain, however, to prevent it "suffering further financial losses". The parent company Quinn Insurance entered provisional administration last night in Dublin, following concerns over the company's financial status and how it was being operated. The Financial Regulator is to have an online presence to oversee operations and "to work with the new management" of the group, which has about 20 per cent of the motor and health insurance market in Ireland. The Financial Regulator has begun an investigation into "certain matters within Quinn Insurance Limited that have very recently come to light." Quinn featured strongly on comparison websites including moneysupermarket.co...
[more: Motor insurer Quinn Direct, part of Irel...]
Thu, 25 Mar 2010:
Rail maintenance contractor Jarvis is set to enter administration following a dive in rail and plant hire volumes, effectively putting 2,000 jobs at risk. Network Rail, the government-backed operator, decided to delay its track renewal work while waiting for new equipment in January. The move had a significant impact on Jarvis, which had also suffered cost overruns on a large rail contract. In January Jarvis announced that it had secured a £55m contract with Chiltern Railways, in an effort to reduce its dependence on Network Rail. Jarvis had also been relying on its lenders, who refused to provide the funds needed for it to continue as a going concern. The York-based company, chaired by former Conservative minister Steven Norris, was once Britain's largest construction business, and had a market value of over £1bn at its peak. The contractors' demise began with the Potters Bar rail crash in May 2002, which resulted in the death of seven people. The train's derailment occurred after a set of points broke. Jarvis, itself, was responsible for that portion of track. Jarvis reported debts of £10.2m ow...
[more: Rail maintenance contractor Jarvis is se...]
Thu, 25 Mar 2010:
Scottish airline Highland Airways has handed over the running of the business to PricewaterhouseCoopers, having entered administration. Most of the firm's 100 employees will to lose their jobs, while operations have been cancelled "with immediate effect", the Civil Aviation Authority said. The airline's problems were exacerbated by the heavy snow at the beginning of this year, which led to cancelled flights and deepening debts. Potential investors had also pulled out at the last minute. Bruce Cartwright, joint administrator at PwC, said: "The company had encountered trading difficulties including the loss of certain contracts." He continued: "As a result they were in discussion with a number of parties over a period of time with a view to developing a new and viable operating model. The directors have now concluded that the options of maintaining operations while introducing a new investor is no longer feasible." The airline, which also operates in Wales, held a CAA operating licence and an air operating certificate. It ran a fleet of nine aircraft, and its services linked Cardiff and Anglesey, Stornoway and Benbecula in the Outer He...
[more: Scottish airline Highland Airways has ha...]
Fri, 19 Mar 2010:
Cardiff City FC will face administration if it does not receive new funding soon, according to reports. The Cardiff City Supporters Club and the Trust said: "The situation is clearly perilous." "Although we are led to believe there may be light at the end of the tunnel thanks to a written offer of investment from a Malaysian consortium." The consortium headed by Malaysian property tycoon Datuk Chan Tien Ghee are flying in to undergo formal talks regarding a potential £6m investment that would enable the Club to continue until the end of the season. If a deal is not secured, the Club won't be able to pay the March wage bill, and will inevitably end up in administration. It has been reported that the club has a £40m debt with £7m overdue. In February, a second winding-up petition was adjourned for 28 days after the club paid £1m towards a hefty tax debt of £2.7m. It had also defaulted on its regular PAYE and VAT bills. The club plans to raise up to £2.25m from the sale of ...
[more: Cardiff City FC will face administration...]
Wed, 17 Mar 2010:
After suffering increasing losses, Teesside fabrication firm Hertel Project Services (HPS) has been placed into administration. Over 100 jobs have been left hanging in the balance after the business succumbed to the affects of the recession. HPS also blamed a lack of new orders. Engineering giant Hertel bought the business from Aker Kvaerner Engineering Services in 2006 and injected several million pounds into it. Joint administrators David Broadbent and David Thornhill of Vantis Business Recovery Services explained that it had proved difficult to attract the level of work needed to keep the site afloat. The business had "been making losses for some time," Mr Thornhill commented. "Its parent company has taken the decision that it can no longer afford to support the company." The company is currently working to finish current orders, having gained the administrators' permission to do so. David Fitzsimons, director of HPS said: "Unfortunately, the business has not been the success we'd hoped it would be." The engineering company is part of Hertel UK, and has customers in the nuclear, petr...
[more: After suffering increasing losses, Teess...]
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