London Retail Trading Limited (07164393): administration
- Status
- Administration ended
- Administration began
- 2012-10-15
- Administrators
- Karyn Jones, John Stephen Kelmanson
- Administrators' firm
- Shaw Gibbs Insolvency
- Formerly
- Soul Leather Limited
- Incorporated
- 2010-02-22
- Location
- London
- Industry
- 68209 Other letting and operating of own or leased real estate
Why it went into administration
- Property / lease costs
- Creditor pressure / legal action
- Cash flow / liquidity pressure
From the administrators' statement
The Company operated in conjunction with three associated compames. The business as a whole operated thirteen retail menswear outlets in the Southeast of England, in the proximity of London One company operated as the stock purchasing company, another to employ the staff and sell the merchandise, the subject company to hold the leases for the various premises of the retail outlets and the final company has owned the Intellectual Property and trade name for many years
In this case, the Administrator considered a pre-packaged sale to be appropriate because the Company could only be placed in a worse position if “the business” was allowed to trade This was because liabilities could have potentially accrued in respect of rent and rates with little or no revenue being received, as the Company was simply a lease holding vehicle and the retail units which remained in the Company name at the date of Administration had to be
transferred, closed or appropriately managed to reduce creditor exposure Additionally there were insufficient funds within the business to pay creditors, with the Bank at the limit of its overdraft facility
Administrators' statement of proposals (2012-12-19) · Companies House register