Party Showroom Limited (07466246): administration
- Status
- Administration ended
- Administration began
- 2018-07-16
- Administrators
- Deviesh R Raikundalia, Situl Devji Raithatha
- Administrators' firm
- Springfields Advisory
- Formerly
- Party Clearance Limited
- Incorporated
- 2010-12-10
- Location
- Leicester
- Industry
- 47990 Other retail sale not in stores, stalls or markets
Why it went into administration
- Creditor pressure / legal action
- Supply chain disruption
- Competition / price pressure
From the administrators' statement
The business was first established in 1994 and taken on by the Company following its incorporation on 10 December 2010. The Company initially specialised in balloon printing before expanding to include the online retail of party products, which were sold on popular consumer sites as well as on the Company's own website. The Company performed well for a number of years following its incorporation with trade peaking in the Halloween and Christmas periods. The Company operated from three commercial units on an industrial estate in Merthyr Tydfil.
In February 2016, the Company granted a fixed and floating charge to the Bank and was provided with an overdraft facility, which was subject to personal guarantees provided by the directors.
The Company’s turnover decreased significantly in the subsequent period and the directors have highlighted the increased competition from overseas companies benefitting from subsidised shipping costs as a key factor. The Company had also accumulated a large quantity of obsolete stock, which tt had struggled to dispose of. A large quantity of the stock is seasonal in nature and would therefore only appeal to the majority of customers during certain periods of the year. If a sale was not achieved in this period, the next real opportunity to dispose of it would not come until the following year. In the interim period, there was a requirement to store the stock, which incurred costs.
Administrators' statement of proposals (2018-09-16) · Companies House register