Edward Cavendish & Sons Limited (00959397): administration
- Status
- Administration ended
- Administration began
- 2012-12-07
- Incorporated
- 1969-08-01
- Location
- Orpington
- Industry
- 46342 Wholesale of wine, beer, spirits and other alcoholic beverages
Why it went into administration
- Competition / price pressure
- Funding withdrawn / unable to refinance
- Creditor pressure / legal action
- Property / lease costs
- Sustained trading losses
- Credit insurance / supplier credit withdrawn
- Parent or group failure
From the administrators' statement
The Company provided the wholesale distribution of wine, and traded from premises at Horsefair House, The Horsefair, Romsey, Hampshire SO51 8EZ The Company received a significant amount of its turnover from trading with smaller Cash and Carry outlets as well as Majestic Off Licences In addition the Company had an exclusive agency contract with KWV Wines of South Africa, which was unfortunately terminated in July 2012 As a consequence, the Company lost a number of it’s
key customers
In February 2012 Tesco terminated their contract with the Company's holding Company, Thierry’s Wine Services Limited (“TWS”) This was due to the fact that one key product that Tesco took was Nicolas Feuilatte Champagne When the annual projections were agreed with Tesco, it was agreed that Tesco would run the product at 80% on promotional price and 20% at the RRP_ In reality Tesco kept the product on offer for 98% of the time and only sold at RRP for 2% of the time As a consequence, they did not make the projected margin and required the Company to pay a margin support of £1 7m TWS refused to do so At the time, the Tesco contract represented 33% of the TWS's gross margin The resultant reduction in profitability led to the bank reducing the TWS’s and
Administrators' statement of proposals (2013-02-07) · Companies House register