Classobtain Holdings Limited (02698573): administration
- Status
- Administration ended
- Administration began
- 2020-04-24
- Administrators' firm
- Quantuma
- Formerly
- Classobtain Limited
- Incorporated
- 1992-03-19
- Location
- Maidenhead
- Industry
- 25110 Manufacture of metal structures and parts of structures
Why it went into administration
- Cash flow / liquidity pressure
- COVID-19
- Parent or group failure
From the administrators' statement
3.1 For the period 1 April 2019 to January 2020, the Group experienced a poor passage of trade which left the business with cash flow difficulties. Following the COVID 19 outbreak and the collapse in future trade income, the directors instructed their accountants to prepare cash flow forecasts to consider the outlook for the Group. These cash flows showed the Company had insufficient working capital to continue trading operations and as a result, the directors approached Quantuma for advice on the appropriate steps for the Company.
3.2 On review of the Group's financial position, it was clear that the Group was insolvent on a cash flow basis as they were in breach of their current lending arrangements with their bankers and would be unable to pay their running operational costs, which for the Group included employee wages and arrears to the landlord of the leasehold premises. Therefore, in order to preserve the value of the business and assets as a going concern, the directors agreed that an Administration process was appropriate for the Company and selected other group companies being John Anderson Hire Limited, Superloo Limited and Smallford Supplies Limited.
3.3 The Company and three group subsidiaries Superloo Limited, John Anderson Hire Limited and Smallford Supplies Limited were dependent upon each other to continue trading activities. Therefore an Administration process for each of these Companies was required in order to achieve the best outcome for creditors through asset realisations. As a result, on 9 April 2020, a Notice of Intention to Appoint Administrators was filed at Court i in relation to the Company and these other subsidiary companies.
Administrators' statement of proposals (2020-06-24) · Companies House register