Rich & Famous Limited (07262933): administration
- Status
- Administration ended
- Administration began
- 2015-10-06
- Administrators' firm
- Kallis & Company
- Formerly
- Better Brand Limited
- Incorporated
- 2010-05-24
- Location
- Whetstone
- Industry
- 56103 Take-away food shops and mobile food stands
Why it went into administration
- Funding withdrawn / unable to refinance
- Property / lease costs
- Sustained trading losses
From the administrators' statement
By way of some background as to the reasons for the Company’s current financial position, the Company was set up in 2010 to acquire 10 Papa Johns’ stores from Papa Johns (GB) Ltd (“Papa Johns”) The stores acquired were based in Addlestone, Norbury, West Norwood, Southfields, East Croydon, South Croydon, Farnborough, Reading, Woking, and Morden Mr Shahed Ali and Mr Mouhsseun Deghogi were partners and invested 50% each to acquire the 10 stores for a value of £1 5 million
An initial amount of £500,000 was paid to Papa Johns on 02/08/2010 and 9 stores were taken over pending the 10" store being opened by end of August 2010 Another £200,000 was paid to Papa Johns in September 2010 A £50,000 discount was given by Papa Johns (GB) Limited for any costs regarding Transfer of Employees under TUPE regulation It was agreed that the balance of £750,000 would be paid over 3 years on a quarterly basis
The first 6 months of the operation were run by two district managers who managed 5 stores each By December 2010 the Company started to have cashflow issues as the stores were not doing the sales predicted by the management and the overheads were much higher than envisaged A new Operations Director, Robert Budge, was brought to the business to turn around the loss making stores and to sort out the cash flow issues
Administrators' statement of proposals (2015-11-23) · Companies House register