Doubleamount Limited (02842241): administration
- Status
- Administration ended
- Administration began
- 2017-07-19
- Administrators' firm
- Begbies Traynor
- Incorporated
- 1993-08-04
- Location
- Salisbury
- Industry
- 47710 Retail sale of clothing in specialised stores
Why it went into administration
- Weak consumer demand
- HMRC / tax arrears
- Competition / price pressure
From the administrators' statement
The Company first experienced a drop in turnover and reduction in its banking facilities following the financial crash in 2008. The Company underwent a reduction in overheads and salaries in response and continued to trade profitably. However, it experienced difficulties again in 2012 when the road outside the shop was dug up and trading conditions were less than ideal for an entire year. During the following year a nearby delicatessen and café closed, which dramatically reduced footfall on the street the Company's shop was situated.
There was continuous heavy discounting on the high street and the director increasingly found that many customers would buy online and only visit a high street store if there was a sale on. Certain suppliers had also set up their own websites and offered online discounts on stock that had only just arrived at the store. The Company's cash flow became more and more difficult to manage over this period.
The accounts show a year-on-year drop in the Company’s net assets between 2013 and 2016. The Company made a large trading loss in the year to 31 January 2016 and was unable to overcome this in the year to 31 January 2017, despite continued financial support from its director. The director contacted us in early July 2017 in response to increased pressure from HMRC.
Administrators' statement of proposals (2017-08-29) · Companies House register