Capitol Tile Supplies Limited (00935541): administration
- Status
- Administration ended
- Administration began
- 2018-11-08
- Administrators' firm
- Begbies Traynor
- Formerly
- Layrite Flooring and Wall Tile Co. Limited
- Incorporated
- 1968-07-16
- Location
- Salisbury
- Industry
- 46900 Non-specialised wholesale trade
Why it went into administration
- Loss of a key customer, supplier or contract
- HMRC / tax arrears
- Creditor pressure / legal action
- Cash flow / liquidity pressure
- Credit insurance / supplier credit withdrawn
From the administrators' statement
As previously explained in our SIP16 disclosure, further provided at Appendix 4, the Company experienced financial difficulties as a consequence of the loss of a major customer in 2015 (£5m annual turnover) from which it never recovered. The Company’s position was further worsened in January 2018 when it’s credit insurers withdrew or reduced cover for suppliers on the basis of the Company's negative financial performance when their audited accounts were filed at Companies House.
The Company sought to maintain its turnover by expanding the number of its retail cutlets. It sought a loan from the National Westminster Bank Plc (“the Bank’) to fund the expansion. Unfortunately these funds were quickly exhausted and ultimately the new retail shops did not have sufficient time or investment to become profitable and became a further drain on the cash flow of the Company.
Creditor pressure was acute in the period leading up the appointment of administrators; in addition to receiving various legal notifications including a Statutory Demand and a County Court Judgement, a number of the landlords were also threatening to instruct bailiffs to enter the retail shops. Additionally, the Company had an informal time to pay arrangement with HMRC which was breached.
Administrators' statement of proposals (2019-01-15) · Companies House register