Ilovegorgeous Limited (06517264): administration
- Status
- Administration ended
- Administration began
- 2019-01-02
- Administrators' firm
- JWS Business Recovery
- Incorporated
- 2008-02-28
- Location
- Salisbury
- Industry
- 14190 Manufacture of other wearing apparel and accessories n.e.c.
Why it went into administration
- Funding withdrawn / unable to refinance
- HMRC / tax arrears
- Creditor pressure / legal action
- Brexit
- Competition / price pressure
From the administrators' statement
The directors had reason to be concerned given that the SS18 and AW18 collections were particularly challenging seasons, and adequate cash flow in the business was difficult to maintain during this period. One significant garment manufacturer had maintained lines of credit with the Company despite there being a large historic debt which the Company was endeavouring to pay on an agreed time to pay basis.
In the light of a disappointing wholesale advance order position for S819, the directors began to consider in detail the options available for the Company. In recent years, the Company has utilised trade loan facilities provided by HSBC Bank plc to fund future stock purchases, which would then be paid down on specific repayment dates in the ordinary course of business. In addition to the trade loans, wholesale customer sales would be funded in advance of payment by way of an invoice discounting facility. This was required to ease cash flow where wholesale customers demanded fengthy credit terms for stock/consignment purchases.
Towards the end of 2018, and with the aforementioned disappointing S$S19 uptake now fully established, the directors were faced with some challenging decisions. On the one hand, production of the SS19 collection was at an advanced stage, part of the collection had already been delivered and paid for, and of the remainder, garment suppliers would require either payment before despatch of the goods or upon delivery. Historically, the trade loans would be used to fund these supplies but the available headroom in this facility was marginal, and given the disappointing AW18 season, the Company had been unable to reserve sufficient additional funds to meet the commitments to garment suppliers.
Administrators' statement of proposals (2019-03-01) · Companies House register