Frenzi Wear Limited (06963964): administration
- Status
- Administration ended
- Administration began
- 2016-12-13
- Administrators' firm
- Grant Thornton
- Incorporated
- 2009-07-16
- Location
- Tansley
- Industry
- 46900 Non-specialised wholesale trade
Why it went into administration
- Cash flow / liquidity pressure
- Loss of a key customer, supplier or contract
- Sustained trading losses
- Loss of key people
From the administrators' statement
Frenzi Wear Ltd was formed in July 2009 by Messrs Jasseb and Charlesworth The Company secured exclusive distribution rights to the UK market for the ‘Flossy Style’ brand, a Spanish plimsoll-styie footwear The initial term was for 3 years
The first 3 years of trading were very successful in which time a revenue of £2 6m was reached Based on the strength of trading the shareholders felt that there was a good opportunity to sell the business Grant Thornton were engaged in marketing the business and finding a prospective buyer Ultumately, the sale of the business proved unsuccessful, however, the Shareholders were introduced to Mr Sater, who was acting as consultant for a private equity firm who had expressed an interest in acquiring the business With an impressive and varied CV Mr Sater was offered a position as Chairman and a minority shareholding of approximately 9% He was appointed on 17 November 2014
In 2014, the Company had been impacted by significant ‘grey market’ goods and parallel imports by unauthorised traders who had acquired stock from wholesalers in Spain This saw revenue drop by £1m_ The desirability and image of the brand was badly damaged as footwear usually seen in some of the top High Street stores were now found on loca! market stalls, ‘pop up’ stores and online up to 50% cheaper than they were being sold by Frenzi Wear's customers
Administrators' statement of proposals (2017-02-14) · Companies House register