Cornish Farm Produce Limited (06821379): administration
- Status
- Administration ended
- Administration began
- 2019-12-20
- Administrators' firm
- Leonard Curtis
- Incorporated
- 2009-02-17
- Location
- Bristol
- Industry
- 46310 Wholesale of fruit and vegetables
Why it went into administration
- Cash flow / liquidity pressure
- Property / lease costs
- Funding withdrawn / unable to refinance
- Creditor pressure / legal action
From the administrators' statement
Comish Farm Produce started in 1986 as a sole trader business, initially as a fruit and vegetable wholesaler, before gradually expanding to offer additional products such as dry/ambient goods and dairy produce. Due to the growth of the business, the decision was made to incorporate into a limited company on 17 February 2009.
The Company was initially funded by the way of an overdraft but as the business further developed the Company set up an invoice factoring facility with Lloyds Bank Commercial Finance Limited (“Lloyds”), secured by way of a fixed and floating charge debenture over the Company, and subject to a personal guarantee from the director. This facility enabled the Company to buy the necessary volumes of stock and also make capital purchases of vehicles and machinery required to service the increased business and in 2014 the Company moved to larger warehouse premises.
Over the subsequent years, the Company continued to grow by taking on new customers and bringing in new product ranges which meant that the average spend of the Company's current customers increased and the Company was able to trade fairly profitably. However, during 2018/19 some of the Company's larger customers moved to centralised buying which lead to a drop in tumover and a reduction in profits.
Administrators' statement of proposals (2020-02-04) · Companies House register