VEG & City Drinks Limited (07774101): administration
- Status
- Administration ended
- Administration began
- 2019-10-23
- Administrators
- Colin Hardman, Henry Anthony Shinners
- Administrators' firm
- Evelyn Partners
- Incorporated
- 2011-09-14
- Location
- London
- Industry
- 46341 Wholesale of fruit and vegetable juices, mineral water and soft drinks
Why it went into administration
- Cash flow / liquidity pressure
- Sustained trading losses
- Management failings / irregularities
- Competition / price pressure
From the administrators' statement
The Company was incorporated in September 2011 and commenced trading in 2013, following two years of testing potential products, and subsequently launching the Savsé smoothie brand. Products were made using an innovative High Pressure Processing (“HPP”) technique, a non-thermal preservation process that removes bacteria without affecting the nutritional value of the fruit and vegetables. In 2015, Savsé launched an HPP Protein Smoothie, followed in 2016 by their branded apple and orange juice. Savsé’s products were retailed in major supermarket chains and cafes and restaurants.
The products were manufactured in Spain and Holland, with the vast majority of products sold in the UK.
AGC Equity Partners Speciat Opportunities Fund | LP (“AGC”) is the 100% equity owner of the Company and has been invested since 2014. Throughout 2018 into 2019, the Company experienced a number of de-listings by customers and increased distribution losses, resulting in financial performance beneath anticipated forecasts. In late 2018 the Company entered into a restructuring exercise, by adjusting their business model from high staffing levels to just key staff members, outsourcing production, marketing and PR activities. However, following a period of management issues and declining performance, AGC was obliged to review their continuing funding, and together with the Board of Directors (“the Board”) seek alternative investment and a possible sale of the Company.
Administrators' statement of proposals (2019-12-20) · Companies House register