E A Broadburn (Chemists) Limited (04524012): administration
- Status
- Administration ended
- Administration began
- 2017-03-13
- Incorporated
- 2002-09-02
- Location
- Brighton
- Industry
- 47730 Dispensing chemist in specialised stores
Why it went into administration
- Cash flow / liquidity pressure
- Property / lease costs
- Sustained trading losses
From the administrators' statement
The Company trades as a retail pharmacy group from three sites being New Scartho Medical Centre, Springfield Road, Grimsby (a core hours NHS Pharmacy trading from leasehold premises) 14-16 St. Peter's Avenue, Cleethorpes (a core hours NHS Pharmacy trading from freehold premises owned by the Broadburn family) and Taylor's Avenue Medical Centre, Taylor's Avenue, Cleethorpes (a non NHS pharmacy that passes NHS prescriptions to St. Peter's for fulfilment trading from leasehold premises).
The Company was experiencing cash flow difficulties as a result of a deterioration of sales volumes and high overhead costs relating to property and staffing costs. The Company was manged for a number of years by Christopher Broadburn until he suffered ill health in 2016, since which time his daughter, Anna Broadburn-Lawson, had to step in to manage the business on a daily basis. St. Peter's has been run by the Company since incorporation. Springfield is located in a Medical Centre having transferred from nearby leasehold premises at 39 — 41 Waltham Road, Scartho from which the pharmacy had traded for many years. The Waltham Road premises are vacant however the Company is still responsible for the rent of £20,000 per annum plus service charge and rates. The Company has tried unsuccessfully to re-let the unit over the last 18 months. The plan for Taylors Avenue was to relocate an additional NHS Pharmacy contract operated by the Company from leasehold premises at 62 St. Peter's Avenue to the newly built Medical Centre. The Company signed up to the lease at Taylor's Avenue on 19 February 2013 at an initial rental of £27,000 per annum. Objections were raised and ultimately the …
In May 2016 the Bank again increased the overdraft facility on the basis that the pharmacy at Springfield Road was marketed for sale and the proceeds used to reduce the Bank's facilities and provide cash flow. Christie & Co were instructed to market the pharmacy and offers were sought in the region of £1,650,000. Interested parties were concerned by the high overhead costs and the sharing of resources between the three sites and were finding it difficult to get a precise understanding on the trading performance of Springfield Road and whilst interest was shown no formal or informal offers were received. Due to the deteriorating cash position and the lack of offers it was decided to place the three sites on the market in late September 2016. The asking price was in the region of £2,300,000 which if achieved would have been sufficient to discharge the Bank’s security and make a full return to unsecured creditors. The marketing campaign was frustrated by the Department of Health (“DoH”) funding cuts announcement on 20 October 2016 the result of which has been far more severe for the Company than had previously been indicated.
Administrators' statement of proposals (2017-03-31) · Companies House register