Big energy supplier & loved Scottish charity close this week
Welcome to our newest round-up of the most interesting and important business and insolvency news stories from the past seven days – it’s certainly been busy.
So if you want to know what financial changes are coming in April you need to know about; how navigating an MVL can be smooth sailing with our comprehensive new guide or how a CVA could be the fresh start a business needs – you can read all these stories and more at our advice centre page.
Rebel Energy
An energy supplier with over 90,000 customers has closed down blaming a “perfect storm” of soaring wholesale prices and squeezed customers.
Rebel Energy served 80,000 households and 10,000 business customers. They have ceased trading with immediate effect with Ofgem acting under the Supplier of Last Resort (SoLR) to transfer customers to a new provider with no interruption of service.
Tim Jarvis, Director General for markets at Ofgem said: “Rebel Energy customers do not need to worry and I want to reassure them that they will not see any disruption to their energy supply and any credit they may have on their accounts remains protected under Ofgem’s rules.”
Rebel was founded in Bedfordshire in 2019 by Dan Bates, a former energy trader with BP to “make things fairer for customers and the planet”.
Mr Bates issued a statement saying: “Rebel Energy has been facing a perfect storm of rising wholesale costs during January and February together with the pressure of the cost of living crisis on our customers.
“The company was regrettably not able to raise the required capital in the short period of time to secure the future of the business which ultimately means that Rebel Energy will be going out of business.”
43 positions will be made redundant as a result of Rebel Energy’s insolvency which makes more than 30 closing down within the last three years as high gas prices have been the trigger.
Ofgem also confirmed that they had begun disciplinary action against the company over concerns that it had not properly ringfenced the money it had collected from customers to be used to support renewable energy subsidies.
Redstone Training
A North West training company that was under investigation by multiple authorities has gone into administration after being awarded £1.25 million to provide training courses for people looking to enter the railway industry.
Redstone Training Ltd were headquartered in Manchester but operated in Liverpool providing skills bootcamps since 2020 focused on getting unemployed people into work in various sectors.
Network Rail recently asked rail regulator the National Skills Academy for Rail (NSAR) to probe a series of allegations brought against the company that would breach its rules.
The company went into administration this week.
Moorland School
A prestigious private East Lancashire school with alumni who went on to play in the Premier League is closing and going into liquidation.
Moorland School in Clitheroe is closing weeks before the GCSE exams begin for over 70 pupils either as boarders or as day attenders.
Moorland Private School was established more than 100 years ago and provided education for children from three months to 18 years old.
It is only the senior section of the school affected with the junior and nursery divisions remaining open.
A letter sent to parents from proprietor Jonathan Harrison said: “It is with great sadness that I write to you with deep and heartfelt sorrow to tell you that Moorland Senior School will close on Friday March 28th.
“Despite our best efforts, our senior school has been operating below where it should be for budgetary purposes. Deteriorating affordability, falling numbers of full fee-paying parents, higher operating costs, VAT on school fees, the added costs of employers’ National Insurance announced in the budget and ultimately owned fees that remain uncollected.”
Moltex Energy
A midlands Nuclear technology company has gone into administration after failing to secure shareholder approval for new investment or asset sales.
Moltex Energy was founded in Stratford-upon-Avon in 2016 to develop nuclear reactor technologies designed to provide clean energy at a lower cost than coal or gas.
A spokesperson for the company said: “Following the failure to achieve the majority shareholder consent to new investments in Moltex Energy, or the sale of its assets, the directors of the company have resolved to place the company into administration.
“The strategy of the administrators is to market the business and assets of the company for sale, including the intellectual property and shareholdings of the subsidiary operations.
“The intention is to seek an acquirer that is well-positioned and suitably funded to develop the technology interests of the company further for the benefit of all stakeholders.”
FBA Brand Builder
A controversial Northern Irish media company has closed with immediate effect and gone into voluntary liquidation.
Ballymena based Darren Campbell launched FBA Brand Builder designed to help companies launch and improve their selling experience online.
The company was facing a group legal action from disgruntled customers claiming misleading claims of profitability and success, failure to disclose hidden costs of the programme, misrepresentation of expertise, deceptive practices and unqualified financial advice.
In a statement Mr Campbell said: “Today I said goodbye to the FBA Brand Builder. It is officially shut down.
“It is no longer trading. I have engaged in CVL liquidation. I can no longer fulfil, run or operate within it ever again. I’m now in a worse place financially than I was before I even started my business journey.”
Jackson Jackpot
An online competitions business has gone into administration and ceased trading after a series of technical issues led to ongoing operational problems.
Jackson Jackpot was established in Doncaster in 2022 and claimed to have paid out more than £12 million to players and almost £600,000 to charities.
A statement from the directors said that “the business had traded successfully until a series of technical issues with a new website created operational problems and incorrectly credited some users’ accounts, temporarily with inaccurate balances.”
Dovetail Enterprises
A 150-year-old social enterprise that provided employment for disadvantaged and disabled people in Dundee has gone into administration after failing to secure funding.
Dovetail Enterprises can trace its roots back to 1865 and manufactured safety doors, mattresses and bed bases. Of the 51 employees, 30 are regarded as living with a disability or a disadvantage.
Cashflow issues caused by rising costs and trading difficulties were blamed for the company’s demise with all positions being made redundant.
A statement issued on behalf of the business said: “Dovetail has been a prominent enterprise in Dundee for generations and has made a tremendous impact on the lives of many people in the local community.
“Dovetail has been a prominent enterprise in Dundee for generations and has made a tremendous impact on the lives of many people in the local community.
“Unfortunately, despite the Dovetail brand being well known for quality products, the financial position of the business was not sustainable and it is disappointing that despite the significant efforts of the board, trading could not continue.
“We’re now rapidly exploring options to sell the business and assets which include a well-positioned property, strong brand name and order book.”
Among the assets the company owns are a 100,000 sq ft manufacturing facility on Dunsinane Avenue, purpose-built for those with disabilities.
UKS Distribution
A West Midlands automotive parts supplier has gone into administration and is looking for new owners to rescue the business.
UKS Distribution has traded for 15 years from Halesowen, supplied with automotive parts from top European brands as a registered stock distributor and latterly via third-party logistic agreements.
The directors sought increased diversification of services and external investment but following a difficult period of trading, cashflow challenges and reduced liquidity, the directors took the decision to appoint administrators to try and protect the business and the nine staff employed.
Inveraray Hotel
The company that runs a famous and well-known 160-year-old Scottish hotel has gone into administration in an effort to safeguard over 60 local positions.
The Inveraray Inn Ltd is the company that operates Inveraray’s George Hotel.
A statement from the directors said: “We have taken the difficult decision to place the George Hotel into administration as a result of historic debts which were crippling the cash flow of the business.
“The business has been in the Clark family for seven generations and their priority was to safeguard the jobs and future of the 60 full and part-time employees.
“The hotel has a fantastic history and beautiful location, offering excellent accommodation and food. The staff have also been fantastic in their hard work and everyone is determined to find the best possible outcome for the benefit of all stakeholders.”
The 24-bedroom hotel is located on the western shore of Loch Fyne in Argyll and Bute and holds an AA rosette for its restaurant. Services will continue to function as normal while a buyer is sought.
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