K2 Apparal Ltd (04328756): administration
- Status
- Administration ended
- Administration began
- 2019-02-18
- Administrators
- Simon Matthew Gwinnutt
- Administrators' firm
- Greenfield Recovery
- Incorporated
- 2001-11-26
- Location
- Derby
- Industry
- 14131 Manufacture of other men's outerwear
Why it went into administration
- Loss of a key customer, supplier or contract
- Property / lease costs
From the administrators' statement
The Company was incorporated in November 2001, as a manufacturer of underwear and outerwear. The Company operated latterly from premises at Humber House, Humber Road, Beeston, Nottingham, NG9 2ET. The trading premises were owned personally by the Director of the Company and an informal rent arrangement was in place.
The Company has traded profitably since incorporation. As at 31 December 2017, the Company had net assets of £14,057. The Company predominantly manufactured men’s and women’s incontinence underwear, for four main commercial customers. In late 2018, the Company lost one of its main customers, resulting in a 30% loss of turnover. The Director attributes the Company’s failure to the loss of turnover together with an increase in trading costs.
On the recommendation of the Company's external accountants, the Director sought professional advice regarding the appropriate statutory insolvency procedures to be considered. Administration was recommended to the Director, as being an appropriate remedial statutory insolvency procedure and the Director instructed Cirrus Professional Services to assist the Company, to take steps to place the Company into administration. The Company ceased trading on 15 February 2019 and the Company’s remaining employees were made redundant on that date.
Administrators' statement of proposals (2019-05-14) · Companies House register