Blain Southern Limited (07325505): administration
- Status
- Administration ended
- Administration began
- 2020-02-24
- Administrators' firm
- ReSolve
- Incorporated
- 2010-07-26
- Location
- London
- Industry
- 82990 Other business support service activities n.e.c.
Why it went into administration
- Cash flow / liquidity pressure
- Property / lease costs
- Sustained trading losses
- Brexit
From the administrators' statement
The Company was incorporated by Harry Blain (via a Jersey based company he controls called BBB Capital Investments Limited — ‘BBB’) and Graham Southern in July 2010 and began trading immediately as a contemporary art gallery representing a number of award-winning artists. It moved to 5 Hanover Square in 2012. In addition, in 2011 a Berlin based subsidiary, Blain Southern GmbH was incorporated and commenced trading as an art gallery.
Initially the Company was loss making as it sought to build a reputation for itself in the marketplace. Whilst it was making a gross profit, the relatively high operating costs (including substantial lease costs for its trading premises at 5 Hanover Square) led to operating losses in each of the first four years of trade. These losses were funded principally by BBB.
Despite the losses, the underlying performance of the business continued to improve with the Company becoming profitable in 2015. It remained profitable until late 2018 when, according to Mr Blain, an industrywide downturn was caused by an increasing volatile global geopolitical environment (examples being the US trade tariffs, US-Sino trade war and Brexit). Consequently, the Company made almost no significant sales in the third quarter (‘'Q3') of 2018 and Q1 2019, leading to an operating loss for these periods.
Administrators' statement of proposals (2020-04-29) · Companies House register