D M S Recovery Limited (06737710): administration
- Status
- Administration ended
- Administration began
- 2011-07-07
- Administrators' firm
- RSM
- Incorporated
- 2008-10-30
- Location
- Newcastle
- Industry
- 5020
Why it went into administration
- Funding withdrawn / unable to refinance
- Cash flow / liquidity pressure
- HMRC / tax arrears
- Sustained trading losses
- Parent or group failure
From the administrators' statement
The company was formed by Keith Lowey and Sean Buckley to acquire the business previously carried on by a long-established vehicle recovery business, Davies Motors Limited The purchase price was £160,000 and the acquisition was completed in March 2009 The purchase consideration was to be paid in several instalments
In the early months of trading the company incurred losses, mainly as a result of the burden of costs relating to prior to the acquisition but which the company had no option but to pay These included arrears of wages and associated PAYE and NIC, and also fuel accounts and arrears under finance agreements
These losses and instalments of the purchase consideration were funded in part by refinancing the vehicle fleet and in part by loans of up to £150,000 provided to Keith Lowey by an individual, David Rogers, but made available in full to the company and for which the company entered into a guarantee supported by a mortgage debenture The directors also cashed endowment policies and incurred personal debt to make additional funds available to the company
Administrators' statement of proposals (2011-07-26) · Companies House register