What stories have you missed this week?
Welcome to the latest news round up of the most interesting business and insolvency news stories from the past week that you might have missed while you’ve been busy helping clients and running your own business.
It’s been another busy news week so if you want to know how to protect your business from supply chain contagion; what to do if you think your business’s engine warning light is flashing and if you could go personally bankrupt if your company fails? You can read all these stories and more at our advice centre page.
Royal Stafford
A Stoke-on-Trent pottery firm which can trace its business operations back to 1845 has gone into liquidation with the loss of 70 positions.
Royal Stafford was based in the Royal Overhouse Manufactory, one of the oldest pottery factories in Burslem for 180 years.
The original Royal Stafford company was founded in 1845 in Longton by Thomas Poole. The firm’s most recent incarnation was formed in March 1992 with the merger of two pottery factories – Royal Stafford China and Barratts of Staffordshire. The Royal Overhouse Manufactory belonged to the Wedgwood family for over two centuries.
A statement from the GMB Union which represented the majority of workers at the production facility said: “This must be a wake-up call for decision makers. The loss of Royal Stafford is a huge blow to workers and the entire community here in Stoke.
“Our city cannot power its kilns with wind and batteries: wishful thinking means spiralling energy costs are now pushing the sector over the edge.
“Meanwhile the illegal importing of foreign forgeries is out of control and driving down orders even further. Our ceramic and pottery industry is vital for economic growth and supports thousands of jobs across the UK. The time for warm words is over, now we must see action.”
By The Horns
One of London’s original craft beer brands has gone into liquidation.
By The Horns was founded in 2011 with just a five and a half barrel kit in Summerstown before moving production out to a new site in Surrey in 2021.
One of the founders Ashley Bull blamed bad debts, the economy and rental increases as some of the reasons for the closure.
He said: “During Covid we were OK, we did a lot of online business and when the leases were up at our old site, we saw the opportunity to build a production unit and it was all working. Then 2023 hit and so did a lot of turmoil.
“We decided to take the lease next door in a calculated gamble to push volume up and we had good sales, but then every kind of cost soared and pinned us back because we couldn’t pass it all on to our customers.
“Two companies we worked closely with went out of business owing us £50,000 between them. Sainsbury’s took us off the shelves despite being a top ten seller because another beer company wanted double the shelf space, our volume dropped and we got a rent review on the second unit that pushed it up by 30%.
“We still had hope for 2024 as we had a number of things lined up but there were delays in decisions by supermarket brewing teams and another company we had a contract with went bust owing us £50,000 so we called in administrators to look at options but we just weren’t able to sell or pre-pack.”
Zedify
An electric cargo bike operator with ten locations across the UK has gone into administration.
Zedify was founded in 2015 and provided zero-emission last-mile logistics services for companies including high street retailers, parcel carriers and independent businesses.
Despite rising demand for sustainable delivery services, it was unable to raise sufficient funding to continue operating. As such, the directors make the decision to seek the appointment of administrators.
While the process is ongoing, two hubs in Cambridge and Edinburgh will remain operational with 38 employees retained. Additionally the Bristol hub is a separate legal entity and will continue to trade.
The remaining seven hubs have ceased operations and will close with a total loss of 105 positions.
A statement from the business said: “Zedify was considered a pioneer within the logistics market, being the UK’s first cargo bike delivery service with a zero-emission, last-mile delivery model.
“We are working to explore all options and are seeking buyers for the business and its assets, including its fleet of electric bicycles and their associated intellectual property including the Zedify brand.”
Contis Financial Services
A Yorkshire based electronic money and payment services firm has gone into special administration.
Contis Financial Services Ltd is an Electronic Money Institution (EMI) regulated by the Financial Conduct Authority (FCA). They are based in Skipton and are authorised by the FCA to issue e-money and provide payment services. They then appoint distributors to distribute and redeem e-money.
In September 2024 their parent company Solaris announced they were discontinuing parts of their EMI business comprising Contis Group.
Administrators have begun an orderly wind-down of operations including the successful transfer of the Engage business to Suits Me which was announced in November 2024.
The process is scheduled to be completed by April 2025 but a long-running and unresolved dispute with a third party financial institution in respect of release of certain customer safeguarded funds has, in the company’s view, made this unachievable.
As a result the directors took the decision to place CFSL into special administration in order to provide the opportunity for special administrators to seek to secure the release of the safeguarded funds, facilitate the distribution of safeguarded funds to customers and complete the orderly wind down of CFSL’s operations.
AJ Sims
A Barnsley shoe shop which has been operating for more than 50 years has closed down citing decreasing footfall and competition from a well-known brand that had recently opened a store on the same street.
AJ Sims employed eight workers who have been made redundant as a result of the procedure.
A statement was issued on behalf of the company saying: “The challenges faced by AJ Sims reflect the difficult trading conditions for many independent retailers, particularly those reliant on high street footfall.
“Despite the efforts of the directors, a combination of reduced customer numbers and increased competition meant that the business could no longer continue.”
Carnival Brewing Company
A Liverpool micro brewery has gone into administration with the loss of three positions.
Carnival Brewing Company was founded in 2017 following a fundraising event at the Clearview Canal. They specialised in collaborations with musicians and record labels to produce limited edition craft beers associated with them.
Despite several attempts to find a buyer, these were unsuccessful so the business had to cease trading. A statement on issued on behalf of the business said: “Many small, independent businesses are facing difficulties at the moment and despite establishing a number of trade and individual customers in a competitive industry, Carnival has been unable to find a buyer and has been placed into administration.”
63 Degrees
A popular French dining restaurant in Manchester has closed and gone into administration.
63 Degrees first opened as a modern French Bistro in 2011 in the popular Northern Quarter and employed ten people, attracting acclaim for the quality of its food.
Administrators confirmed that ten employees have been made redundant as a result. A statement was released which said: “Many restaurants and bars are finding it hugely challenging to compete in the current economic climate and despite a fine reputation and talented creative team, the directors of 63 Degrees (Sweet Ladybird Ltd) had no choice but to place the company into administration.
“We’re now seeking a buyer for the equipment and someone who can take on the lease of a fantastic venue in a lively part of Manchester city centre. These factors mean there is a huge opportunity to bring a new offering and build on the excellent reputation the restaurant had built up.”
2025 is already shaping up to be a stormy year.
Whether physically through Storm Eowyn or financially with American chaos emanating throughout the globe, things are going to be bumpy.
But you don’t have to wait until the wind fills your sails – you can take action now to explore all the options available to you to make your business more resilient.
Get in touch with us to arrange a free initial consultation with an expert advisor.
Once they get a clearer picture of your unique circumstances then they’ll be able to decide what direction you want to go in and get there quicker.