Fri, 10 Jun 2022 | ADMINISTRATION
Administrators will seek to realise the business and assets of online drinks retail and wholesale business Spirit.Ed Group following its collapse. The business, formerly 31Dover, collapsed as a result of a difficult trading period and a failed process to raise new funding.
Colin Hardman and Clare Lloyd of Smith & Williamson were appointed as joint administrators to DMD Operations and Vanquish Operations last week. Businesses in the group include online drinks retailer Spirit.Ed, subscription service The Gin Club (which ceased operations in March amid sourcing issues) and wholesalers OnStock and Vanquish. The group also previously operated the now-defunct subscription business Off the Still.
Joint Administrator Colin Hardman commented: Following a period of difficult trading conditions, the companies’ management had attempted to find a new strategic funder. Whilst we understand that negotiations were at a very developed stage, ultimately they were not successful.”
“The joint administrators will therefore be aiming to realise the best possible value from the business and assets, in order to maximise the return to the creditors.”
In the year to April 2020, DMD Operations reported losses of £15.5 million, up from £299,000 a year previously. In its filleted financial accounts for that year, the company reported total assets of slightly over £1.5 million, with net liabilities of £14.9 million. During the same time period, meanwhile, Vanquish Operations had total assets of £670,609 and net liabilities of £216,874.
Founded as 31Dover in 2012, the company’s strong initial growth saw it announce plans in 2019 to raise more than £500,000 in a crowdfunding campaign that valued the total business at approximately £45 million. At the time, the business was registering annual revenues of around £12 million, which it was looking to grow to £30 million.
However, plans were abandoned for a potential £1 million crowdfunding after a private phase failed to reach £300,000. The company said at the time it would seek “alternative routes” of financing, but then saw its business severely hampered by COVID-19's devastating impact on the hospitality industry.
Despite the group’s struggles and ultimate collapse, the hospitality industry’s post-COVID recovery, as well as the ongoing popularity of e-commerce and subscription-based services, mean that many of the group’s assets set to be sold by administrators could be revived as viable operations.
Click here to view the UK's latest distressed businesses.
View recent UK administrations.
Interested in buying liquidated assets? Click here to see the latest businesses in liquidation.
Find online businesses for sale in the UK
Explore an exceptional opportunity to acquire a thriving Italian café and restaurant situated in the vibrant town of Surbiton. This esteemed establishment has garnered a strong reputation for its delightful cuisine, and welcoming atmosphere.
LEASEHOLD
This is a great opportunity to purchase a 2020 established and popular fish and chips shop in Jedburgh, with a fantastic customer base and delicious takeaway dishes in a thriving area.
LEASEHOLD
A long-established business specialised in selling quality burger and fries. Their offer appeals to a wide variety of customers across demographics and has resulted in a loyal clientele and repeat business. After achieving considerable success after...
LEASEHOLD
25
|
Apr
|
Ambulance services provider acquired in pre-pack deal | BUSINESS SALE
Elite Emergency Medical Services Ltd (Elite EMS), an ambulan...
25
|
Apr
|
Tile business old to management team by Norcros | MBO/MBI
Johnson Tiles UK, a tile business based in Stoke-on-Trent, h...
25
|
Apr
|
New private equity owner for fleet hire firm | BUSINESS SALE
West Lancashire-based fleet hire business NRG Riverside has ...
Business Sale Report is your complete solution to finding great acquisition opportunities.
Join today to receive:
All this and much more, including the latest M&A news and exclusive resources
We can help you capitalise on insolvent businesses. We list UK businesses in administration, liquidation and with winding up petitions daily. Ensuring our members never miss out on an opportunity
Please choose your settings for this site below. For more information please read our Cookie Policy
These cookies are necessary for our website to function properly and provide you with access to all features.
These are analytics cookies that help us to improve the way our website works.
These are used to improve the functional performance of the website and make it easier for you to use.