D3 Direct Limited (03614680): administration
- Status
- Administration ended
- Administration began
- 2012-08-13
- Administrators
- Ranjit Bajjon, Malcolm Peter Fillmore
- Administrators' firm
- Kroll
- Formerly
- Frazer International Services Limited
- Incorporated
- 1998-08-12
- Location
- Crawley
- Industry
- 6340
Why it went into administration
- Cash flow / liquidity pressure
- Creditor pressure / legal action
- Loss of a key customer, supplier or contract
- Bad debts / customer insolvency
- Sustained trading losses
From the administrators' statement
The Company was formed in August 1998 (initially as Frazer International Services Limited) by David Russell The Company operates a distribution, storage and packing logistics business which concentrated on fulfilment of internet purchases and, until May 2012, operated from a 40,000 sq ft leasehold warehouse tn Crowthorne The Company is owned by the current directors, David Grad (70%) and David Russell (25%), alongside Sarah Grad (5%)
From a trading perspective, the business suffered a significant loss over the previous 12-18 months in relation to contracts with Boulevard Entertainment Limited & Direct Offers Limited which equated to 40% of the Company's yearly turnover Boulevard had purchased a substantial quantity of exWoolworth DVDs for resale and the Company expanded its facility and activities to handle this work However, disputes and ultimately, credit notes were agreed totalling approximately £146,000 (excluding VAT) In addition, the Company suffered further bad debts totalling approximately £22,000 and a loss of six key clients, causing the Company to have incurred high levels of bad debt and cash flow difficulties As a consequence, the Company suffered significant trading losses and a considerable drop in turnover of 75% between January and May 2012
The Company's lease at Crowthorne came to an end in May 2012 with no prospect of it being renewed or extended, since the landlord (Legal & Genera!) indicated their intention to develop the site Thus the Company was obliged to relocate and entered into negotiations with 808 X-Ray Logistics Limited, a Heathrow-based company which had spare capacity to effect a merger of the two businesses
Administrators' statement of proposals (2012-09-03) · Companies House register