Marson Fabrics (London) Limited (01944332): administration
- Status
- Administration ended
- Administration began
- 2021-01-07
- Administrators
- Paul Robert Appleton, Mark Robert Fry
- Administrators' firm
- Begbies Traynor
- Formerly
- Creostore Limited
- Incorporated
- 1985-09-04
- Location
- London
- Industry
- 46410 Wholesale of textiles
Why it went into administration
- Creditor pressure / legal action
- COVID-19
- Cash flow / liquidity pressure
From the administrators' statement
4.1 Given the Company’s financial difficulties, my firm was approached by the Directors of the Company for insolvency advice. My staff and | arranged a meeting with the Directors, Laurence Myers and Nicholas Louis, to carry out a brief review of the Company’s financial affairs. Following that review, it became apparent that the Company had substantial liabilities with the Bank and other trade creditors. It was apparent from the review that turnover had been severely impacted by the pandemic and the impact it had on the recoverability of the Company’s Sales Ledger.
4.2 When viewed with its inability to pay its debts as and when they fell due, it was clear that the Company was insolvent both on a cash flow basis and on a balance sheet test. However, there were no instances of creditor duress, formal demands and letters before action or extant winding-up petitions. With no prospect of adequate funding going forward, the responsible action on the part of the Directors was to place the Company into a formal insolvency procedure to, inter alia, protect themselves from misfeasance and any accusations of wrongful trading.
4.3 In light of the Company’s insolvency, I advised the Directors in respect of their fiduciary duties, specifically concerning protecting the position of creditors and, in particular, the ongoing exposure to the Bank. | explained various insolvency options available to the Board.
Administrators' statement of proposals (2021-03-16) · Companies House register