Fylde Dairies Limited (06047718): administration
- Status
- Administration ended
- Administration began
- 2011-09-28
- Administrators
- David Robert Acland, Lila Thomas
- Administrators' firm
- Begbies Traynor
- Incorporated
- 2007-01-10
- Location
- Preston
- Industry
- 0121
Why it went into administration
- Competition / price pressure
- Creditor pressure / legal action
From the administrators' statement
Fylde Danes Limited (‘the Company”) was formed on 10 January 2007 with Howard Hegarty, Philip Crichley and John Sanderson being appointed Company Directors The business provided finished milk and cream to local milkkmen and retailers and operated from leased premises in Preston, Lancashire The Company employed sixteen staff
The business enjoyed steady growth however was making a loss [n 2010, the business secured a contract with a major supermarket chain however, due to the increasing volume of orders being placed, the cash flow position drastically worsened and the Company breached tts credit terms with a number of milk suppliers Seventeen of the suppliers placed the Company ‘on stop’ Immediately prior to the Administration the Company was only being supplied with milk by five local suppliers and as a result, the Company could not supply all its customers and lost several customers to another local competitor
We were contacted by the Company to carry out a review of the Company's financial position and met with the Director, Mr Hegarty, on 20 September 2011 The Company was expenencing creditor pressure and was struggling to obtain ongoing supplies to complete orders Furthermore, the Company operated an invoice discounting agreement with the Royal Bank of Scotland Invoice Finance (“RBSIF”) who had issued a demand letter to the Directors for breaching the terms of their agreement It was evident that the Company would be unable to make wage payments to its employees without a significant cash injection
Administrators' statement of proposals (2011-11-24) · Companies House register