The Dorothy Kerin Trust Burrswood (04562803): administration
- Status
- Administration ended
- Administration began
- 2019-04-30
- Administrators
- Mark Newman, Vincent John Green
- Administrators' firm
- Insolvency Practitioners of Crowe U.k.
- Formerly
- The Dorothy Kerin Trust
- Incorporated
- 2002-10-15
- Location
- London
- Industry
- 55100 Hotels and similar accommodation
Why it went into administration
- Cash flow / liquidity pressure
From the administrators' statement
On 4 March 2019, upon the recommendation of the Company’s solicitor at Cripps LLP, the Company's Chief Executive Officer (“CEO”) sought insolvency advice and contacted Crowe. A meeting with the CEO and the interim finance director (“FD”) was arranged and held on 12 March 2019 to advise the Company in respect of its financial affairs. At that meeting the cash flow difficulties facing the Company were discussed.
Crowe was informed that the Trustees were considering the options available to the Company, in light of year on year trading deficits and that the Company had been experiencing cash flow issues for a number of years with debts having been settled from the sale of property assets, from borrowing or from legacy donations. In the current year, a loss of £1,300,000 was forecast, notwithstanding cost reduction exercises. Accordingly, the Trustees and executive team had concluded that the business model was not sustainable.
We were informed that the Company's bankers had provided further funding of £300,000 at the end of February 2019 and that this amount was deemed sufficient to deal with the wage costs of the Company’s employees to the end of April 2019. Further we were advised that certain of the properties on the estate were being marketed for sale which would provide further funding for wages to the end of June 2019 and thereafter the partial repayment of secured lending. Crowe were informed that income was insufficient to discharge creditor liabilities past June 2019.
Administrators' statement of proposals (2019-07-02) · Companies House register