CAE Groes Bakery Limited (04542092): administration
- Status
- Administration ended
- Administration began
- 2013-01-21
- Administrators
- Paul Robert Boyle, David Michael Clements
- Administrators' firm
- Harrisons Business Recovery and Insolvency
- Incorporated
- 2002-09-23
- Location
- Manchester
- Industry
- 10710 Manufacture of bread; manufacture of fresh pastry goods and cakes
Why it went into administration
- Funding withdrawn / unable to refinance
- Creditor pressure / legal action
- Competition / price pressure
- Cash flow / liquidity pressure
- Property / lease costs
From the administrators' statement
The Company opened a second bakery in a nearby village but after a 50% increase in rent it could no longer maintain the overheads for this site and it was closed The Company defrayed the redundancy Habilities and the cost of transferring the plant and machinery to its main premises. Furthermore, the Company began to experience cash flow difficulties as a result of the general economic climate and experienced an annual loss of trade of circa £100K
In September 2012 it instructed the assistance of a brokerage firm (the Brokerage’) to reduce the overheads of the Company and provide additional funding by financing its assets including its book debt ledger It also became clear that it leased equipment that was rarely used and it was questioned that after taking into consideration the overheads whether any revenue was produced. It is understood that the Brokerage recommended to the Company that it return this equipment and refinance the remaining equipment to a more favourable agreement
The Company was looking to refinance its equipment and to enter into an tnvoice discounting facility with Bibbys. At this time Bibbys sought the advice from an insolvency practitioner and subsequently, in November 2012 a meeting with the Directors, Bibbys and Harrisons was held to discuss Its financial position Although, the Company was being pursued for an outstanding debt by a utility company, It was hopeful it could enter into a payment plan and settle the amount due in full over a period of time. Subject to this, it was not considered that It was necessary for any insolvency procedure and the Company entered Into an invoice discounting facility with Bibbys
Administrators' statement of proposals (2013-02-11) · Companies House register