Limelight Sports Ltd (03700632): administration
- Status
- Administration ended
- Administration began
- 2023-11-06
- Administrators
- Benjamin John Wiles, Geoffrey Wayne Bouchier
- Administrators' firm
- Kroll
- Formerly
- Limelight Projects Ltd; LEA Events UK Limited; LEA Retail Limited
- Incorporated
- 1999-01-25
- Location
- London
- Industry
- 90020 Support activities to performing arts
Why it went into administration
- Sustained trading losses
- COVID-19
- Supply chain disruption
- Cash flow / liquidity pressure
- Competition / price pressure
From the administrators' statement
The Company traded successfully until the COVID-19 pandemic, which prevented most of its events and campaigns from taking place. Revenue was severely constrained, leading to significant losses. The Company took a CBILS loan and an RLS loan from Coutts & Company to support the business through this period, however the repayment of those facilities severely impacted cash availability, causing significant arrears to accrue with trade creditors.
In October 2023 it was clear that the Company was in severe financial distress and a restructuring was required, likely via a sale of the business. Kroll was engaged to run an accelerated mergers and acquisitions process, however this did not identify any parties who wished to acquire the business and / or assets of the Company.
In the absence of a purchaser for its business and / or assets, the Company was unable to pay its creditors as and when they fell due and Kroll assisted the Directors with placing the Company into Administration.
Administrators' statement of proposals (2024-01-03) · Companies House register