DCM Optical Clinic PLC (04488288): administration
- Status
- Administration ended
- Administration began
- 2013-10-10
- Administrators
- Kenneth Wilson Pattullo
- Administrators' firm
- Begbies Traynor
- Formerly
- Meritjasper Public Limited Company
- Incorporated
- 2002-07-17
- Location
- Manchester
- Industry
- 86900 Other human health activities
Why it went into administration
- Funding withdrawn / unable to refinance
- Cash flow / liquidity pressure
- Sustained trading losses
From the administrators' statement
The Company leased and operated 19 outlets from leasehold premises across the UK providing optician and refractive surgery services to customers, operating under the Optical Express brand The Company was incorporated on 17 July 2002 and was a wholly owned subsidiary of DCM (Optical Holdings) Limited (“the Parent’) No employees were directly employed by the Company and staff were supplied by an associated group company, Optical Express (Westfield) Limited (‘Westfield”)
As a consequence of the continued UK recession, discretional spending behaviour impacted sales volumes and created pnce pressures, resulting tn an adverse affect on gross margins Despite the Company making savings in its administrative expenses the Company incurred cumulative losses tn the year to 31 December 2012 of £16m, followed by further trading losses of £901,383 in the 7 months to 31 July 2013 As a consequence, in September 2013 the parent Company decided it was not prepared to continue funding the business sn its current form, having built up intercompany debt funding of £3 9m by 10 October 2013
With no alternative sources of finance available and with rental payment obligations falling due in respect of the Company's premises, the Company's inability to meet these obligations from its own cash reserves caused the Directors to deem the Company to be insolvent as it was unable to pay its debts as and when they fell due
Administrators' statement of proposals (2013-12-02) · Companies House register