Ukfd Realisations Ltd (05542003): administration
- Status
- Administration ended
- Administration began
- 2023-07-04
- Administrators
- Paul James Meadows, Daniel James Mark Smith
- Administrators' firm
- Teneo
- Formerly
- UK Flooring Direct Limited
- Incorporated
- 2005-08-22
- Location
- Birmingham
- Industry
- 47530 Retail sale of carpets, rugs, wall and floor coverings in specialised stores
Why it went into administration
- HMRC / tax arrears
- Cash flow / liquidity pressure
- Funding withdrawn / unable to refinance
- Weak consumer demand
- Creditor pressure / legal action
- COVID-19
- Sustained trading losses
- Supply chain disruption
- Competition / price pressure
From the administrators' statement
The Company was an online flooring retailer to both consumers and businesses and operated from a single Coventry warehouse (it previously operated from a further leasehold site in Hinckley, which was operationally exited in February 2023). At the time of our appointment, the Company had 85 employees, all based at its Coventry site.
The Company commenced trading in 2005, and in November 2020 the Business Growth Fund (“BGF”) acquired a 14.5% stake in the business for an equity investment of c.£8m, for funding support. The Company has not acquired any business or assets from an insolvency process.
The Company sustained losses in FY21 (£3.1m) and FY22 (£2.7m) as a result of adverse trading impacted by Covid-19 and further decline in consumer confidence leading to a funding shortfall in December 2022, supported by a further £2.0m secured loan from BGF. However, despite steps being taken to seek to improve performance, trading continued to be challenging in 2023. The poor trading performance ultimately led to pressure on liquidity, which was further exacerbated by the withdrawal of credit from the Company’s major EU suppliers due to a delay in the filing of the Company’s annual financial statements, because of the auditor’s concern regarding going concern status.
Administrators' statement of proposals (2023-07-21) · Companies House register