Drinks Brokers Limited (04489927): administration
- Status
- Administration ended
- Administration began
- 2023-09-20
- Administrators' firm
- Opus Restructuring
- Formerly
- Tactical Sales Resources Limited
- Incorporated
- 2002-07-19
- Location
- Milton Keynes
- Industry
- 46170 Agents involved in the sale of food, beverages and tobacco
Why it went into administration
- Loss of a key customer, supplier or contract
From the administrators' statement
The Company traded successfully returning profits in each successive year of trading following commencement until it encountered a loss in 2022 — 2023, following successive price hikes that the Company could not pass on to its main customer, Framptons, in respect of a contract worth, at its peak, £8m with Lidl. Consequently, the Company’s profit margins were adversely affected, and matters came to a head in April 2023 when Lidl terminated the Company’s contract due to what it termed ‘delivery issues’ created by Framptons who were then in turn awarded the same contact by Lidl.
The Director had sought replacement turnover but concluded that, in the short to medium term, the Company would not be able to perform at levels that would generate sufficient profits to extinguish the liabilities incurred.
Given the difficult financial situation the Company was in, the Director first approached Steven John Parker of Opus on 5 July 2023, who was introduced by the Company’s accountant, William Evans & Partners, to provide advice on the Company’s financial position and to discuss the Restructuring & Insolvency options available.
Administrators' statement of proposals (2023-10-07) · Companies House register