K.J.Leisuresound Limited (01011572): administration
- Status
- Administration ended
- Administration began
- 2011-05-06
- Administrators
- John Edmund Paylor
- Administrators' firm
- Guardian Business Recovery
- Incorporated
- 1971-05-18
- Location
- London
- Industry
- 5245
Why it went into administration
- Cash flow / liquidity pressure
- HMRC / tax arrears
- Creditor pressure / legal action
- Weather / natural events
From the administrators' statement
The Company was formed in 19714 and in 1997 Mr S P Wilcock and David Eudaile acquired control. {It traded as a retailer of specialist Hi-Fi and audio visual equipment, originally from premises in Peterborough. More recently it has been operating from ground floor and basement of leased premises at 26 New Cavendish Street, London W1G 8TY Mr Wilcock and David Eudale each hold half of the share capital, and from 1997 until 2006, when he moved to Thailand, Mr Eudale also acted as director. Mr Eudale retained his shareholding and loan to the company, secured by a debenture created on 30 November 1997.
In September 2005, the basement, which had only recently been fitted out as a showroom, was badly damaged by flooding from a flat above. The subsequent insurance claim totalled nearly £1 million but settlement became extremely protracted, and eventually only £205,000 was collected, in 2010 The disappointing outcome and and loss of
business as a result of the incident had caused cash flow difficulties, and as early as January 2009, H M Revenue & Customs attempted to distrain on the Company's assets for arrears of VAT This action was only stopped when it was pointed out that the assets were subject a floating charge in the debenture secunng Mr Eudale’s loan. “Time to pay” arrangements were negotiated in respect of tax liabilities, but further arrears accumulated.
Administrators' statement of proposals (2011-07-04) · Companies House register