Eastern Leisure Limited (04018017): administration
- Status
- Administration ended
- Administration began
- 2019-02-15
- Administrators
- Phillip Francis Duffy, Matthew Ingram
- Administrators' firm
- Kroll
- Formerly
- Definedate Limited
- Incorporated
- 2000-06-20
- Location
- Manchester
- Industry
- 56302 Public houses and bars
Why it went into administration
- Cash flow / liquidity pressure
- Creditor pressure / legal action
- Weak consumer demand
- Funding withdrawn / unable to refinance
- Property / lease costs
- Sustained trading losses
From the administrators' statement
As mentioned above, detailed information in relation to the Company's background and history, the lead up to the Appointment Date and information in relation to the Company’s Sale Transactions is provided in the SIP 16 Report enclosed at Appendix 9.
In summary, the business has struggled to maintain profitability in recent years due to refurbishment works and increasing creditor and landlord pressures. In addition, competing businesses have established themselves within proximity to King’s Head, decreasing footfall over time.
The Company's cash flow was impacted by the events in recent years and losses began to accumulate. By the third quarter of 2018, both venues needed major cosmetic works, which was Clearly going to be costly and require substantial capital expenditure. The costs of the prior Indi Bar refurbishment and retrospective King's Head rent increase resulted in the Company having insufficient cash to complete these required refurbishments.
Administrators' statement of proposals (2019-03-07) · Companies House register