R.D. Franks Limited (00326317): administration
- Status
- In administration
- Administration began
- 2010-11-24
- Administrators
- Wayne Harrison, Eric Walls
- Administrators' firm
- RMT Accountants & Business Advisors
- Incorporated
- 1937-04-05
- Location
- Gateshead
- Industry
- 5247
Why it went into administration
- HMRC / tax arrears
- Funding withdrawn / unable to refinance
- Creditor pressure / legal action
From the administrators' statement
The Company was incorporated on 5 April 1937 The company operated as a specialist fashion book and magazine shop which had been operating from the West End of London since 1877 Latterly it traded from 5 Winsley Street, London W1W 8HG
The recent recession, and ability of the public to source specialist books and magazines on the internet, had impacted on the business to such an extent where it was no longer viable The director looked to refinance and introduce fresh capital but ultimately the position deteriorated to where the company could no longer afford to pay tts creditors, pnmanily its suppliers, staff and HM Revenue and Customs (HMRC) habilites
The company began experiencing creditor pressure from HMRC and various suppliers The director, who had been running the business for 30 years, sought advice from KSA Alternatives to available to the company were explored in detail, including liquidation, a company voluntary arrangement (“CVA”) and administration Following a detailed analysis of the options, it was felt that the administration route would provide a better return to all creditors as opposed to other insolvency procedures.
Administrators' statement of proposals (2011-01-21) · Companies House register