Penta Foods Limited (02628701): administration
- Status
- Administration ended
- Administration began
- 2018-11-23
- Administrators' firm
- Kreston Reeves
- Incorporated
- 1991-07-11
- Location
- London
- Industry
- 46390 Non-specialised wholesale of food, beverages and tobacco
Why it went into administration
- Competition / price pressure
- Creditor pressure / legal action
- Cyber attack / IT failure
- Credit insurance / supplier credit withdrawn
From the administrators' statement
Penta Foods Limited (“the Company”) is a private limited company that was incorporated on 11 July 1991. The Company is a specialist Food Wholesaler that supplied restaurant chains around the UK, operating from its registered office in Farnborough, Hampshire, and from a depot based in Manchester. The Company is a family-run business and employed approximately 180 staff, which supported its fleet of 75 vehicles that supplies goods to over 2,000 customers. Through the two warehouses, the company was able to service restaurants in London, Southern England, the Midlands, Northern England and Scotland.
At the time of entering into Administration, the Company had three directors who also held shares in the Company: Syed Manzer Abbas Rubbani, Syed Azher Abbas Rubbani, and Syed Raza Abbas Rubbani. The business was supported by an invoice discounting facility with IGF Invoice Finance Limited (“IGF”), who holds a fixed and floating charge over the assets of the company created on 26 March 2018. IGF has been providing invoice discounting facilities to the Company since taking this over from RBS IF Limited in early 2018. The Company also has a stock finance facility with IGF Group. There are no other charges registered against the Company's assets.
The business had historically operated profitably and had been growing steadily following the 2008 financial crash. However, the devaluation of the sterling following the 2016 referendum impacted on margins, with this exacerbated by pressure on the restaurant sector in 2017 and 2018, which impacted on the company’s sales. The company had structured its business around its higher historic sales volume and the downturn in the sector left the company with a burdensome overhead structure that proved unsustainable. The sector issues also resulted in a reduction in credit insurance and the financial pressures on the business caused creditor pressure and a shortage of stock.
Administrators' statement of proposals (2019-01-02) · Companies House register