Hargreaves Plants Ltd. (03704976): administration
- Status
- Administration ended
- Administration began
- 2019-07-25
- Administrators
- Andrew Mctear, Joanna Watts
- Administrators' firm
- Begbies Traynor
- Incorporated
- 1999-01-29
- Location
- Norwich
- Industry
- 82990 Other business support service activities n.e.c.
Why it went into administration
- Supply chain disruption
- Loss of key people
From the administrators' statement
The Company was incorporated on 29 January 1999 as a nursery cultivating and propagating soft fruits and specialist plants such as strawberries, rhubarb and asparagus. The Company had two freehold sites, a nursery at Walpole Cross Keys, King’s Lynn and land in Sutton Bridge used as a caravan site known as Poppy Fields. It also operated from an additional two leasehold nursery sites at Somersham in Huntingdon and Church Farm in Hillington, King’s Lynn.
On 20 January 2017 the Company granted fixed and floating charges over the freehold property, business and assets to Mibar Properties Limited (“Mibar’), to secure monies loaned to the Company. The sole director and shareholder of the Company is also a director and shareholder of Mibar.
In 2017 the Company experienced excessive crop damage due to the over-spraying of pesticides from the neighbouring farms. The Company made two insurance claims for the related losses the second of which was calculated by the ex-director to be in excess of £900,000. This was eventually settled in June 2019 for £280,000 leaving unrecouped losses in excess of £600,000 which had a significant impact on the Company's cashflow. Subsequently, the poor health of the managing director and stock shortages led to a drop in sales from £4.4 million for the year ended 31 October 2017 to £3.3 million in the year ended 31 October 2018. Trading remained difficult and sales during Easter of 2019 were much lower than hoped and it became apparent that stock had been significantly over valued.
Administrators' statement of proposals (2019-09-16) · Companies House register