MY Planet Online Limited (07147591): administration
- Status
- Administration ended
- Administration began
- 2022-08-18
- Administrators' firm
- Begbies Traynor
- Incorporated
- 2010-02-05
- Location
- Manchester
- Industry
- 47910 Retail sale via mail order houses or via Internet
From the administrators' statement
Full details surrounding the lead up to the administration are contained in the SIP 16 Statement previously provided to creditors and contained at Appendix 4 of this report. An extract of these circumstances is as follows — The Company began to experience financial difficulties as a consequence of a large investment in stock (c.£6,000,000) from one company whose terms subsequently became somewhat onerous to the business, including unmanageable repayment plans. Although the Company was able to reduce the debt due to this supplier from £6m to less than £1m over the next 5 years, it put the Company in a very difficult position regarding cash flow. At the same time, the Company's most significant trading platform, Amazon had suspended the Company from activity on their site and by the time the Company was able to be reinstated it had lost somewhere between £700,000 and £1,000,000 of revenue and then took some time for the popularity on that site to be rebuilt. At this point the Company developed its own website to trade from and although turnover increased, costs and unmanageable repayment plans led to difficulties in managing other creditors.
By Spring 2022, the directors became concerned that the Company was not going to be able to recover and by the end of June 2022 was struggling to obtain credit to replace stock to a meaningful level and it was therefore felt that the Company was insolvent and sought a sale of the Company and ultimately consulted Insolvency Practitioners in early July 2022.
A brief marketing campaign of the business was undertaken and the best offer for the remaining stock,
Administrators' statement of proposals (2022-09-16) · Companies House register