While the end of the holidays are in sight, many directors and business owners will be wondering when they will even begin!
But if you have managed to carve out some time away from the frontlines, spend a little more catching up with all the latest interesting and important business and insolvency news stories you might have missed from the past week.
So if you want to know why the latest monthly insolvency statistics remain stubbornly high; why the number of Capital Gains Tax (CGT) payers has quadrupled in 30 years and everything you need to know about the advantages of administration – you can read all these stories and more at our advice centre page.
Ted Baker
The fashion company owned by Authentic Brands is in administration and is closing the remaining 31 UK retail stores this week with over 500 positions at risk.
The brand will continue to trade via existing wholesale partners such as John Lewis and House of Fraser.
The owners also own other fashion labels such as Juicy Couture and Reebok and while administrators continue to explore options for new partners/investment, the decision to close the stores will help reduce expenses.
CTD Tiles
A tile retailer with over 60 UK stores has been purchased out of administration.
CTD Tiles went into administration this week and was immediately purchased by Topps Tiles for £9 million. They have purchased the brand, intellectual property including brands such as CTD Trade and CTD Architectural Tiles, two distribution centres, selected stock and 30 of its retail stores.
Topps said they are “complementary” to its existing businesses and the acquired stores provide it with “the opportunity to make a meaningful entry into the housebuilder segment and expand its existing share of the architect and designer segment.”
The deal means the immediate closure of an additional 56 CTD Tiles stores that were not included in the deal with several hundred positions being made redundant.
Drink Fresh Beer/Jolly Good Beer
A UK drinks distributor has gone into voluntary insolvency and ceased trading with immediate effect.
Drink Fresh Beer, which also owns the subsidiary Jolly Good Beer, announced the decision this week and confirmed that all staff have been made redundant as a result.
A statement from managing director Ciaran Reynolds said: “Since taking over in April 2023, it has proven very difficult to turn the business around.
“Over the last 15 months we have pushed extensive resources into trying to rebuild and improve trade but have faced a series of setbacks and unfortunately cannot make it work. I am truly sorry for the impact this will cause for our staff, customers and suppliers.”
A further statement from Jolly Good Beer founder Yven Seth said: “I long for the optimism we had as a team at the start of 2020 – things were good, the balance sheet strong, the trajectory enthusiastic and we had big plans but it wasn’t to be.
“The pandemic drained everything we had and converted a positive balance sheet to nothing but bank debt. The subsequent period of cost inflation, economic uncertainty and a lack of real hospitality market recovery made the debt unserviceable.
“It destroys me to see everything I spent a decade building and trying to hold together and save, end like this.”
Lixir
A UK mixer company has also gone into liquidation following economic challenging conditions.
Matt Mahatme, co-founder of Lixir Drinks said: “I never envisaged writing this post but last month we made the difficult decision to place Lixir into liquidation.
“It’s been a rough few weeks but if i’m honest it’s been an even tougher year leading up to this. There have been immense challenges that despite our best efforts, we couldn’t overcome.
“With any challenger brand, you are up against it from day one, competing with giants, but even more so with the relentless headwinds faced by the industry. A global pandemic, lockdowns, war, Brexit, cost of living crisis – the list goes on. It’s been exhausting.
“It hurts so much more knowing we didn’t make it work for you because we wanted it for our shareholders as much as for ourselves.”
Lixir was founded in 2018 through a crowdfunding campaign to create a line of “big flavour” mixers with less sugar, fewer calories and nothing artificial.
The brand expanded quickly into 18 markets and became the UK’s first B Corp-certified premium tonic and mixer brand in the same year owing to its “planet-positive” strategy and work with charity partner Just A Drop.
Women into Construction (WIC)
An independent, not-for-profit organisation that promoted gender equality in construction has ceased trading.
Founded in 2008, Women into Construction (WiC) started as a project on the Olympic site in East London, providing training, work-placements and job opportunities for women wishing to enter the construction industry.
In January 2015 WiC became a stand-alone, community interest company and worked with contractors on a number of projects across London and the West Midlands including Crossrail, Tideway and HS2. They had previously worked with many partners including CITB, Job Centre Plus along with several universities and construction colleges.
A statement from the company said the closure was a result of “a difficult trading year due to a challenging economic climate for both charitable and construction sectors” and that the company “had worked tirelessly to find solutions to these challenges, however, despite our best efforts, we have concluded that our business model is no longer viable.”
Kath Moore MBE, Managing Director of WiC said: “We know that there is still much to be done to transform diversity in the construction industry, but we are proud of all that we have achieved over the past 16 years.
“Over 4,700 women have had in-depth support, 3,000 completed industry training, 1,300 completed work placements and this has led to an amazing 1,300 women gaining employment.”
Hotchillee
The organiser of British cycling events have announced they have entered liquidation after undergoing financial difficulties in recent years.
Hotchillee founder Sven Thiele said that a combination of the Covid pandemic and Brexit had been critical in the brand’s difficulties.
A statement from the company said: “It is with deep sadness that Hotchillee have instructed administrators to place the company into liquidation in the coming weeks, due to financial difficulties experienced in recent years.
“Despite our best efforts, the combination of internal matters and ongoing financial challenges without sufficient capital injection to continue trading, the directors sought advice in dealing with the company’s affairs.
“After 20 extraordinary years, this is a devastating blow to all of us at Hotchillee, as well as to our loyal community and partners.”
The firm was due to organise the upcoming London-Paris gravel 2024 ride, Sri Lanka Gravel 2025 and Cape Rouleur 2025, but due to the liquidation these events can no longer be delivered.”
Innovative Retail Development
A Coventry property firm that was repurposing a retail centre in the town has appointed administrators.
Innovative Retail Development was founded in 2019 and held the lease for Riley Square which they were renovating for retail and social housing.
A clause in the lease granted by Coventry City Council required investment in site and community improvements which the company failed to meet. Administrators were appointed by a secured creditor to safeguard their interests.
A statement from the business said: “It is deeply regrettable that Innovative Retail Development has been forced into an insolvency process as a temporary protective measure. The role of administrators now is to control rental income, better understand the balance of interests between secured creditors and Coventry City Council and deliver a practical solution for the community and to maximise medium term value for creditors.”
Deda
A leading dance centre located in Derby is entering voluntary liquidation as arts venues across the city face an unprecedented financial crisis.
Deda was founded in 1991 to promote dance and the arts in Derby. It offered a diverse range of dance classes, performances and community outreach programs. As a National Portfolio Organisation funded by Arts Council England, Deda had delivered years of high-quality arts programming.
A statement from the board of trustees said: “The pandemic has posed extraordinary challenges for cultural organisations worldwide and Deda has not been immune.
“Despite our best efforts to recover, the economic climate has remained challenging. Audience numbers have not rebounded at the pace needed to offset the rising operational costs. This has placed an unsustainable strain on our resources, making it impossible to continue our operations in the current form.”
Chair Corey Mwamba said: “As with many other arts organisations, Deda is facing considerable financial challenges and as such the trustees have taken professional insolvency advice. During the insolvency process, we will continue to work with our colleagues across the city to hopefully find ways that the arts community can move forward together.”
Additionally the Derby Museums Trust which operates Derby Museum and Art Gallery, the Museum of Making and The Quad arts centre are facing serious financial difficulties.
This is still the ideal opportunity to use this time constructively and plan ahead for the rest of 2024.
Get in touch with us today to arrange your free initial consultation with one of our expert advisors at a convenient time for you.
They’ll let you know what options you have based on your unique circumstances and how you can make the changes to improve your prospects in the short, medium and longer terms.