BM Realisations Limited (07780699): administration
- Status
- Administration ended
- Administration began
- 2024-08-07
- Administrators
- Paul Steven Cooper, Paul Robert Appleton
- Administrators' firm
- Begbies Traynor
- Formerly
- Bargainmax Limited
- Incorporated
- 2011-09-20
- Location
- London
- Industry
- 47910 Retail sale via mail order houses or via Internet
Why it went into administration
- Rising costs / inflation
- COVID-19
- Cash flow / liquidity pressure
- Weak consumer demand
- Sustained trading losses
- Parent or group failure
From the administrators' statement
The Company acted as an online discounted toy seller offering high-quality and affordable toys and games for children. The Company offered a large variety of popular brands, delivering across the UK and Europe. The business built a strong brand and operated across multiple distribution channels. Despite the challenges arising due to the Covid-19 pandemic, the Company traded well in FY21. Management attribute the commencement of the war in Ukraine, as the significant catalyst for the Company financial difficulties. In 2022, the Company financed significant investment, focusing on their website, warehouse and stock. Due to increasing costs and high demand for premises, this development was more costly than initially anticipated, which damaged profitability.
Stock management also became an issue, and with increasing costs to purchase and shipping charges rising, significant spending was required in order to maintain suitable stock levels.
At this time, despite historic expectations that the market would grow, the cost-of-living crisis resulted in a significant deterioration in revenue, with consumers reducing spending on non-essential items. This made it difficult for the business to manage increasing costs of operations and resulted in large amounts of stock value being lost due to lack of demand.
Administrators' statement of proposals (2024-09-13) · Companies House register