With the Olympics due to begin and take over the next three weeks, it can sometimes feel like running a business is a never ending decathlon with a triathlon thrown on at the end for good measure.
And as any gold medalist will tell you, rest and recuperation is an integral part of any successful training routine.
So when you’re grabbing a deserved five minutes all to yourself, catch up on all the latest business and insolvency news stories you might have missed right here.
So if you want to know why June saw the third highest monthly total of business insolvencies in 24 years; how the history of Capital Gains Tax (CGT) can give us clues to its future and what the 40 bills announced in the King’s Speech might mean for your business – you can read all these stories and more at our advice centre page.
Carpetright/Tapi
Carpetright has been brought out of administration by former rivals Tapi.
They have purchased Carpetright’s intellectual property, two warehouses and 54 of its store footprint which will save 308 positions and “expand the business into a number of areas we don’t currently serve.”
However the deal will see the remaining 218 stores close along with the existing head office in Purfleet with 1,018 positions being made redundant as a result.
Tapi was founded in 2014 by Martin Harris, the son of Carpetright founder Lord Harris of Peckham who remains a shareholder.
Tapi managing director Jeevan Karir said: “Our goal, initially, was to try to save all of Carpetright. However, as we looked into the details of the situation, we quickly established that saving the entire business was unviable.
“The business has been materially loss making for a number of years and it has significant debt held by the owner. We then turned ourselves to trying to save a number of stores whilst being mindful of how the competition authorities would look at any deal.
“So we arrived at 54 stores and two supporting warehouses. All of which are exceptional and that we’d be proud to have as part of the Tapi family.
“Carpetright had fallen victim to challenges facing many retailers, especially those selling big ticket items. A mixture of factors, including a big reduction in consumer spending due to cost of living pressures, lower home sales and a debilitating cyber attack made it impossible for the business to continue in its current form.”
The Cube Hotel, Birmingham
The owners of the hotel located in the iconic Cube building in Birmingham have appointed administrators.
MSHA Global Investments acquired the hotel located on floors 23 and 24 of the building two years ago in a £12.5 million deal when it was known as Hotel Indigo.
MSHA also owns the leasehold of the Marco Pierre White restaurant located on the top floor but is unaffected by the administration. A subsidiary of MSHA, the Caskade Group, went into administration in June which put thousands of jobs in fast-food franchises all across the country in doubt.
46 Taco Bell sites were sold in a pre-pack administration deal while 40 KFC branches were also sold to another buyer.
The hotel will continue to trade while the financial position is stabilised and alternative options sought.
QM Systems
A Worcestershire automation firm that has been operating for 35 years has appointed administrators and ceased trading with the immediate loss of 63 positions.
QM Systems was founded in 1987 and designed and manufactured automated production lines and test systems for aerospace, automotive and rail sectors for such major operators as Airbus, Panasonic, Bentley and Siemens.
A statement from the business said: “Due to a number of unexpected factors, the company faced significant cash flow pressures which resulted in the directors appointing administrators in order to protect the creditors and employees’ interests.”
Hub Box
A south west burger chain has gone into administration and was bought out by the same directors as a new “phoenix” company – but have apologised to creditors and shareholders who have lost out financially.
Hub Box was formed in 2003 and is headquartered in Cornwall and is owned by Richard Boon. He said that administration was the best option to protect jobs and suppliers and had personally invested over £500,000 over the winter to keep the business afloat.
A new company called South West Restaurants Ltd was formed and purchased the assets and intellectual property of Hub Box. The owners are Mr Boon and another shareholder who were directors of Hub Box.
As a result all 10 of their restaurants are able to continue trading uninterrupted with 300 jobs being retained. Mr Boon issued a statement saying: “We don’t take the debt owed to some of our other creditors or the significant sums lost by our shareholders lightly. We are truly very sorry for this.
“Hub Box went into a process of administration in order to save the business. It has been a huge and difficult decision and we’d like to take a moment to explain.
“The reality is that the last couple of years have been incredibly tough. As with many other companies across the hospitality industry, rising food, energy, interest rates and labour costs have put increasing pressure on our cash flow.
“We had two options – the first was liquidation which meant closure and 300 jobs lost. The second option was to go into administration and restructure under the umbrella of a new company.
Marston Book Services
A major book distributor based in London is going into administration after its American owners made the decision to approach administrators.
Marston Book Services are owned by the Independent Publishers Group (IPG).
A statement from their CEO Joe Matthews said: “We have made the difficult decision to file a notice of intent to appoint an administrator for Marston Book Services and its parent company United Independent Distributors.
“For six months we’ve worked to find a path forward through a sale of the business, a partnership with investors and other options to avoid administration. Despite some interest, those efforts have failed.
“In particular our strategic plan to restore the company to profitability requires that we exit our Milton Park facility in Oxfordshire and while that move is underway and due to complete by the end of August, the landlord refuses to engage with us on a settlement. Our US and UK banks have also decided not to extend further credit.
“With several statutory demand letters from publishers and threats of winding up petitions, we are simply out of time and must take steps toward administration.”
Michael J Lonsdale – Construction
The UK’s largest mechanical and electrical (M&E) construction specialists have gone into administration.
Michael J Lonsdale was founded in Slough in 1986, employs 240 staff and has worked on such major projects as Broadgate and the redevelopment of Battersea Power Station.
A letter from directors to staff acknowledged that the decision meant it was “an exceptionally difficult and sombre day.”
It continued: “Since being established the company has been a beacon of excellence in the industry. We have prided ourselves on consistently delivering high quality services and have enjoyed the privilege of being the preferred M&E contractor for end users, clients and consultants, particularly in the London region.”
The statement acknowledges that various challenges had been faced in recent years including Covid-19, credit rating issues, surging inflation, Brexit and the ongoing Ukraine conflict.
“The combination of these challenges, coupled with the aggressive commercial tactics employed by certain general contractors has regrettably led us to this unfortunate situation.”
The statement ended that the board had recently made efforts to secure refinancing for the company but had been unable to obtain the necessary interest from investors.
Hollins Homes
A North West housebuilder has ceased trading and gone into liquidation following the failure of several of its latest ventures.
Hollins Homes was formed in 2015 but was in financial jeopardy following the collapse of a number of its special purpose vehicles (SPVs) that were set up to deliver housing schemes in the area.
Two SPVs set up to create 140 homes in Lancaster and Garstang were placed into administration by United Trust Bank. In total six entities connected with individual Hollins Homes projects have either gone into administration or a liquidation process in the last month.
Now the parent company which employs 15 staff directly is being wound up.
While the government unveiled their direction of travel for the months ahead last week – are you as confident that you’re heading in the right direction?
We don’t offer businesses a SatNav but we do provide the next best thing – a free initial consultation with one of our expert advisors to let you get your bearings and plot your way forward from here.
Once they get a full view of your business and its financial circumstances, they’ll be able to work with you to come up with a roadmap to your ideal destination ahead.
Get in touch as soon as you’re ready to get underway!