North East Growers Limited (05075486): administration
- Status
- Administration ended
- Administration began
- 2012-11-21
- Incorporated
- 2004-03-16
- Location
- London
- Industry
- 01130 Growing of vegetables and melons, roots and tubers
Why it went into administration
- Cash flow / liquidity pressure
- HMRC / tax arrears
- Loss of a key customer, supplier or contract
- Property / lease costs
- Weather / natural events
From the administrators' statement
The Company was incorporated on 16 March 2004 under the directorship of Antonio MagistroContenta and Thomas Reuben Salmon, who are also the Company’s shareholders, holding 71% and 29% of the shares respectively The Company’s principle activity was that of growing and selling salad, fruit and vegetable produce and it was initially formed as a result of a dispute between the owners / directors of Selby Salads Ltd (“SSL”), who included Messrs Contenta & Salmon SSL owned and traded from a 38 acre site based in Brigg Lane, Camblesfort, Selby The directors of Selby Salads Ltd subsequently agreed to split the trading site between two new trading companies, namely North East Growers Ltd and Drax Limited (“Drax”), and for both companies to operate from the site going forward and pay a share of the rent toSSL Accordingly, the Company took over 18 acres of this land and grew crops in the greenhouses which had already been erected on the land.
The two directors had many years experience of the vegetable growing business and had both been successful in this trade prior to the Company’s incorporation
The Company was initially funded by a Bank overdraft facility of up to £550,000, which was supported by way of a personal guarantee provided by Mr Tony Magistro, together with a Cross Guarantee which was later provided by Hedon Salads Ltd, (“HSL”), a company in which Mr Magistro was also a director Since the Company’s trade was seasonal, it has always relied on the overdraft facility to provide working capital during the winter months, during which trade / sales were negligible Any overdraft incurred during this time was subsequently repaid during the spring and summer months, when the majority of the Company’s sales were made.
Administrators' statement of proposals (2013-01-23) · Companies House register