Parssa Ltd (07776972): administration
- Status
- Administration ended
- Administration began
- 2017-04-13
- Administrators
- Matthew Douglas Hardy, Andrew Turpin
- Administrators' firm
- Quantuma
- Incorporated
- 2011-09-16
- Location
- Birmingham
- Industry
- 56101 Licenced restaurants
Why it went into administration
- Cash flow / liquidity pressure
- Creditor pressure / legal action
- Loss of a key customer, supplier or contract
From the administrators' statement
Both Companies had traded successfully since incorporation, with sufficient profits in the businesses to allow dividends to be paid. As such, the Directors decided to enter a new market and used cash resources to finance a new venture in Coventry. This was reflected as a loan to that company venture. Despite a substantial outlay of funds in setting up this new fast food restaurant, due to various issues, the venture failed, teaving substantial sums owed to both Companies.
This had a severe effect on the cash flow for both Companies and, despite reviewing overheads with a view to reducing them where they were able, the financial position of the Companies could not be improved as turnover could not be increased. Due to mounting Creditor pressure, the Directors sought the advice of the Companies’ Accountants who advised that they seek the advice of Insolvency Practitioners.
| therefore met with the Directors on 4 April 2017. The scope of this meeting was to establish whether the Companies were in a position to continue to trade as viable going concerns. It was quickly established at the meeting that the Companies were experiencing major cash flow problems and there was little confidence that further funding, either from the Directors personally or externally, could be obtained to remedy the position in the medium to long term.
Administrators' statement of proposals (2017-06-16) · Companies House register