The Traditional Free Range EGG Company Limited (07494070): administration
- Status
- Administration ended
- Administration began
- 2019-04-02
- Administrators
- Timothy Alexander Close
- Administrators' firm
- Grant Thornton
- Formerly
- Blackacre Farm Eggs Ltd
- Incorporated
- 2011-01-17
- Location
- Taunton
- Industry
- 01470 Raising of poultry
Why it went into administration
- Competition / price pressure
- Cash flow / liquidity pressure
- Bad debts / customer insolvency
- Property / lease costs
- Sustained trading losses
From the administrators' statement
The Company was incorporated on 17 January 2011 in the name of Blackacre Farm Eggs Limited and commenced trading at this time, having taken over the egg business from Blackacre Farm Limited, a family owned business.
The Company initially rented its trading premises and machinery from Blackacre Farm Limited, paying £7,000 per month in rent.
Despite an initial start-up investment of £100,000, cash flow was difficult as the Company was trying to support sales of £3,000,000 and ever-increasing expenditure. The Company’s bankers, Lloyds Bank PLC (“the Bank”) supported the Company as much as it could, but without the ability to secure its lending on physical assets owned by the Company, the Bank was limited to how much it would advance. As a result of this the Company entered into a confidential invoice financing agreement with Lloyds Bank Commercial Finance Limited (“LBCF”) to ease cash flow pressure.
Administrators' statement of proposals (2019-06-10) · Companies House register