Imported Perishable Produce Limited (00925666): administration
- Status
- Administration ended
- Administration began
- 2012-02-14
- Incorporated
- 1968-01-09
- Location
- Altrincham
- Industry
- 5190
Why it went into administration
- Competition / price pressure
- Weather / natural events
From the administrators' statement
The Company was incorporated in 1968 and began trading in 1970 specialising in the supply of mushroom seed. The Company operated successfully in this market until some of its buyers (growers) experienced crop failures in 1999/2000. When the product manufacturers failed to compensate the growers, the financial burden fell on the Company. The Company found a new supplier in Italy and the relationship worked well until 2005 when an almost identical situation arose with the Company again suffering financial losses as a result. This led the Company to exit the seed business and move into mushroom fertiliser.
The restructuring of its operations required a significant capital investment which was financed by the director. Despite some early promising signs, the pressure on cash flow was too great, largely due to the historical accumulated losses, and, in August 2008, the Company entered into a Company Voluntary Arrangement (“CVA”) with its creditors. This involved the Company making monthly contnbutions from trading profits for a penod of 3 years
Although the Company enjoyed relative success in its new market, it did not generate sufficient profits to meet 1ts obligations under the CVA which led it to seek a Variation of the terms. This involved a 2 year extension and a reduction in monthly contnbutions. The Company remained profitable until around May 2011 when it lost a sizeable customer who no longer required the product. The Company reacted by reducing the workforce and seeking new geographical markets to enter. However, this had little impact on short-term performance since it generally takes around one year to acquire a new customer due to the ngorous product testing necessary before a customer can place a substantial order.
Administrators' statement of proposals (2012-04-02) · Companies House register