Event Management Catering Limited (05410859): administration
- Status
- Administration ended
- Administration began
- 2013-02-28
- Incorporated
- 2005-04-01
- Location
- Tansley
- Industry
- 56210 Event catering activities
Why it went into administration
- Sustained trading losses
From the administrators' statement
Event Management Catering Ltd successfully traded for several years employing as many as 600 casual staff and servicing catering contracts at major sporting venues in the north of England At a time when the popularity of sporting events was soaring, Event Management Catering Limited entered in to contracts with clubs and stadia based around profit sharing and fixed asset investment in catering facilities
The old board had renegotiated the contracts from a management fee structure to an obligated and guaranteed minimum amount which the company could not facilitate, effectively these contractual obligations which saw the company guarantee minimum amounts to clients would be the downfall of the company
As the economic downturn began to affect the UK and spending on luxury products declined due to lower disposable income, so fell the attendances at sporting event The company's contracts were geared (and reliant) around an upward curve or linear trend in attendances as the product and/or service was profitable dependent upon critical mass The fact that the company had guaranteed mininum amounts, coupled with falling turnover fundamentally resulted in the failure As the company broke away from its parent in late 2012 it became apparent that variances to the contracts were integral to the company's survival and trading longevity
Administrators' statement of proposals (2013-04-25) · Companies House register