Nordic Bakery Limited (05034418): administration
- Status
- Administration ended
- Administration began
- 2018-07-10
- Incorporated
- 2004-02-04
- Location
- London
- Industry
- 56102 Unlicenced restaurants and cafes
Why it went into administration
- Creditor pressure / legal action
From the administrators' statement
The history and events leading to the appointment of the Administrators were detailed in the Administrators’ SIP16 report issued on 13 July 2018. However, a summary is given below;
The Company operated as a small cafe chain from several locations in central London, offering a range of bespoke Nordic goods including coffees and pastries, some of which are branded under the ‘Nordic Bakery’ range. Since incorporation, the Company struggled to achieve profitability. Following the unsuccessful opening of a fourth café in Covent Garden, which itself incurred significant monihly losses, the Company moved to appoint a new board of directors in August 2017 in an effort to improve the Gompany’s financial position.
The impact of historic losses left the Company with significant liabilities. The Company had sought to reduce its operational overheads by closing down the Covent Garden branch and reaching an agreement with the premises landlord in respect of the remaining lease term. Despite the closure of this store praviding a boost to long term cost reduction, the Company’s overall liabilities had reached a level which was simply unmanageable. This, coupled with the threat of legal action in respect of a historicai Joan, left the Company with little alternative other than to reach an agreement with its creditors by way of a CVA,
Administrators' statement of proposals (2018-09-14) · Companies House register