Dartmoor Inn At Lydford Limited (03485165): administration
- Status
- Administration ended
- Administration began
- 2014-01-20
- Administrators
- Christopher Norman, Ian Walker
- Administrators' firm
- Begbies Traynor
- Formerly
- Parisport Limited
- Incorporated
- 1997-12-23
- Location
- Exeter
- Industry
- 55100 Hotels and similar accommodation
Why it went into administration
- Sustained trading losses
- Creditor pressure / legal action
- Property / lease costs
From the administrators' statement
The Company was incorporated towards the end of 1997 and it was initially made up of three investors, one party being the current director, Philip Burgess, together with his wife and director at the time, Karen Burgess One of the inital investors was bought out for £30,000 within the first year Mr and Mrs Burgess subsequently remortgaged their property in 2003 to buy out the other investor for approximately £85,000
In 2003/2004, the Company took out a bank loan of £150,000 to fully refurbish the kitchen, comply with fire safety regulations, rewire the property's electrics and construct new letting bedrooms
Over the penod of the next four years, the Company's trade was very good and the pub won several industry awards During this penod, Mr Burgess was also a director in another business in which he received a salary that allowed him and his wife not to draw any funds from the Company Mr Burgess was made redundant from this other venture in 2007 and this coincided with extremely difficult trading conditions that came as a result of the economy entenng into a recession The recession had a big impact on the Company and its turnover was significantly reduced by around 35% The Company set up an outside catenng division to try and bndge the gap of the reduced turnover figures This has been moderately successful, but it only contnbuted an additional 10% to the turnover of the business The Company continued to trade on in the difficult market conditions. The Company was further impacted due to the sharp fall in property pnces, reduced net margins when the VAT rate was increased to 20% and also exorbitant business rates, in respect of which the Company had recently managed to negotiate a small reduction
Administrators' statement of proposals (2014-03-18) · Companies House register