What else happened this week?
For many businesses this is going to be the busiest period of the year and we hope that you will be doing so much trade and work that you won’t even notice inflation ticking up and possibly putting immediate interest rate cuts on hold as a result.
Although if you do get a couple of moments to yourself, it might be useful to use them to catch up on all the important and interesting business and insolvency news stories you might have missed from this week.
So if you want to know how HMRC will use Debt Collection Agencies (DCAs) and bailiffs in future; why water and energy bills will continue to bite SMEs despite anything announced in the Budget; everything you need to know about Time To Pay Arrangements and marking 140 years of the Official Receivers’ office – you can read all these stories and more at our advice centre page.
Typhoo Tea
One of Britain’s most recognised tea-brands and advertising jingles have filed a notice of intent to appoint administrators.
Typhoo Tea was founded in 1903 in Bristol and is the eighth largest tea company in UK retail. Purchased by private equity firm Zetland Capital in 2021, it has recently struggled with reduced sales, widening losses and rising debts.
In a statement confirming the decision, CEO Dave McNulty said that the move would enable Typhoo to “pursue a sale of the business.”
While sales of the main flagship brand have grown 48% in the past year, its overall business has suffered as consumers have adopted coffee, herbal infusions and carbonated drinks over traditional black tea.
Revenues have fallen and losses increased with a large rise in costs in 2023 caused by a group of “organised trespassers” who broke into Typhoo’s closed Merseyside factory and occupied it for several days causing “significant business interruption” and extensive damage to the fabric and contents as well as rendering “a material quantity” of stock unusable.
The brand was relaunched in the Autumn to place greater emphasis on a new mission to tackle the issue of sexual violence against women working on tea plantations in Africa.
Dumbarton FC
Scottish League One side Dumbarton FC have become the second side in the division this season to go into administration after the collapse of a land sale deal. They have been deducted 15 points and are now bottom of the league, below Inverness Caledonian Thistle who also went into administration earlier this month.
The club’s administrators said that they have sought the protection of administration after “the non-receipt of significant funds that were owed to the club from the sale of development land in 2021.”
A statement from the club said: “The directors of the club were left with no option other than to appoint administrators. They will investigate the circumstances surrounding this transaction and other issues affecting the club, but will not be in a position to comment further at this time.
“Their immediate priority is to ensure that the club can complete its fixtures and will meet with key stakeholders to ensure this can be achieved.
The club was taken over in May 2021 by Cognitive Capital with The Sons Supporters Trust noting “We are saddened but not shocked by today’s developments. For some time it has been evident that the club has been operating under straitened circumstances and it is hoped that an end can now be brought to both the club’s opaque ownership model and the boardroom tensions which have characterised affairs since 2021. It is our opinion that the local directors have reached a brave and sensible decision.”
Trusswell Haulage
A Yorkshire haulage firm that had been operating since 1940 has gone into administration with the loss of 86 positions.
John Truswell & Sons, trading as Truswell Haulage, operated 50 lorries at its peak from several locations in the UK including Scotland.
A statement from the business said: “Unfavourable market conditions have led to unsustainable commercial losses and unfortunately it has not been possible to secure a future for the company.
“Administrators will therefore be taking the necessary steps to maximise returns for the benefit of all creditors in accordance with their legal duties.”
Mereway Bathrooms
A Birmingham-based bathroom business has gone into liquidation and ceased trading less than a year after their sister Kitchen business also closed.
Mereway Bathrooms faced increasingly difficult trading conditions resulting in cash flow difficulties that impacted their ability to continue trading.
A statement from the business confirmed this and gave additional context pointing out that similar trading conditions had been experienced by the company’s competitors with a number of recent insolvencies in the sector as a result.
It continued: “Following an unsuccessful attempt to secure a purchaser for the business and assets, the Company ceased trading on November 7th 2024. Regrettably, all 50 employees have been made redundant and are being supported.
“The remaining staff are working with directors to facilitate an orderly wind-down through a Creditors’ Voluntary Liquidation (CVL).
Vintage Superstore Group
A Vintage fashion business with outlets in Devon and Cornwall has gone into liquidation blaming a sharp drop in consumer spending and a lack of tourists visiting in the summer.
The Vintage Superstore Group Ltd traded from stores in Launceston and the Rotunda Building in Plymouth city centre.
In a long statement, CEO Oliver Hawkins said: “The rising costs of running our business, combined with the financial strains many of our customers have been experiencing, created an environment where it became pretty much impossible to maintain a financially secure retail business with that level of overheads.
“Our revenues were down by 400% this summer compared to the previous year. Nobody could predict this and we were relying on the income to get out of the rut. Cornwall’s entire tourism trade dropped significantly this year and has caused strain for many more businesses just like us.”
Camstead Homes
A Leeds-based residential developer specialising in prestigious homes in rural locations has gone into administration.
Camsted Homes – incorporating Camstead Ltd, Scotfield Group Ltd and Yelcon Ltd – had experienced sustained trading difficulties over 2024 like many others in the construction sector, due to various economic pressures which in turn, led to cash shortages and increased pressure from suppliers.
Directors looked for solvent solutions but couldn’t find any so a decision was made to appoint administrators who will look for a positive outcome for all sites. Unfortunately 20 posts have been made redundant as a result.
A statement was issued saying: “2024 has been another challenging year for the building and construction industry, with housebuilders continuing to battle with the impact of rising raw material costs, wafer-thin margins and the impact of high interest rates and rising mortgage costs on consumers.
“While the Government’s planning reforms have given hope to many across the industry, unfortunately, the trading difficulties encountered by Camstead Homes proved too challenging to overcome.”
Hopefully this won’t be your last chance this year to take time to consider some professional advice on how you can make the best of the rest of 2024 but it is still your best one!
Get in touch with us to arrange a free initial consultation and depending on your goals, you can begin to work towards achieving them before the first decorations go up – although be quick, if our street is anything to go by…