L.C. Mitsiou & SON Limited (02871055): administration
- Status
- Administration ended
- Administration began
- 2013-09-26
- Incorporated
- 1993-11-11
- Location
- Winchmore Hill
- Industry
- 55900 Other accommodation
Why it went into administration
- Property / lease costs
- HMRC / tax arrears
- Funding withdrawn / unable to refinance
From the administrators' statement
The Company was incorporated on 11 November 1993 and initially traded as a fashion company. In early 2003, the Company changed its activities and its sole focus became property. The Company’s main activity prior to its Admmustration was the supply of accommodation for the homeless, primarily in the North and East of London, with its clients including the London Boroughs of Enfield, Barnet, Haringey and Waltham Forest
The Company approached landlords and contracted to lease (usually on a3 year basis) their properties, on a full repairing basis, at a fixed rent The property would then be offered to the Council at a fixed rent / temporary accommodation basis, whether for one night, one month or up to a maximum of 3 years Due to the nature of the tenants however, who were often unstable (either financially, mentally or emotionally), the tenancy tended to be very short and, as such, any void of occupancy was usually the liability of the Company rather than the local authority.
Whilst the rent was fixed with each respective landlord for the period of the contract, rents were only fixed with the local authorities for the period that their tenants were in occupation and a constant reduction in rents paid by local authorities, in line with central government budget reductions over the past few years, squeezed margins even further
Administrators' statement of proposals (2013-11-18) · Companies House register