JMD Decorating Services Limited (06997536): administration
- Status
- Administration ended
- Administration began
- 2020-06-26
- Administrators
- Brian William Milne, Eileen Blackburn
- Administrators' firm
- Quantuma
- Incorporated
- 2009-08-21
- Location
- Leicester
- Industry
- 82990 Other business support service activities n.e.c.
Why it went into administration
- COVID-19
- Bad debts / customer insolvency
From the administrators' statement
The director of the company has explained that JMD Decorating Services Ltd began trading in August 2009 and quickly established itself as a force within the market, with around 20 directly employed decorators carrying out work around the UK.
After several years successful trading, in 2017 two of the Company’s debtors were placed into liquidation which resulted in around £30,000 in lost revenue and severe pressure on the Company's cash flow. In 2018, three of the directors resigned but remained as shareholders and Michael Clennan was made sole director. Later that year, further cash flow issues were caused due to a significant customer not adhering to 30 day payment terms. After amassing a debt of nearly £90,000, the debtor took over 8 months to settle the sums due which had a significant knock on effect on the Company's ability to pay suppliers and other liabitities.
These issues took the Company several months to recover from and were still on-going when the Corona Virus Pandemic inevitably again put severe pressure on cash flow, with most customers unable to settle their debts. This unfortunately left the Director with no option but to place the Company into Administration to avoid the financial position from deteriorating any further.
Administrators' statement of proposals (2020-09-07) · Companies House register