Bannon&Myers Limited (07856160): administration
- Status
- Administration ended
- Administration began
- 2019-11-28
- Administrators
- Philippa Smith
- Administrators' firm
- Smith & Barnes Insolvency Practitioners
- Incorporated
- 2011-11-22
- Location
- Leeds
- Industry
- 43210 Electrical installation
Why it went into administration
- Creditor pressure / legal action
From the administrators' statement
3.1 Smith & Barnes Insolvency Practitioners Ltd were first instructed by David Bannon, the director of the Company, on 25 November 2019 who was keen discuss the current financial position of the Company. This in the main was due to the Company starting to experience problems with one of it’s customers, RIS Retail (“RIIS”) during November 2019. The Company was engaged on 3 contracts for RUS in London, Manchester and Sheffield. The London contract was completed with no issues raised, however problems were reported to the Company in relation to the Manchester and Sheffield contracts. Whilst RIS paid part of the monies owing under the contracts, they refused to settle all monies outstanding, leaving a balance of approximately £350,000 owing. This had a detrimental affect on the Company’s cash flow and whilst attempts were being made by David Bannon, the director of the Company, to resalve the queries raised by RIIS, the Company began to experience pressure from it’s creditors to settle outstanding liabilities.
3.2 On 25 November 2019, David Bannon approached Smith & Barnes Insolvency Practitioners Ltd to discuss the options available to the Company. He advised that legal action had commenced against RIS. A number of options were discussed including, including approaching a number of funders and discussing whether a factoring company would be prepared to purchase the contract debt. Also a pre-packaged insolvency was discussed which would allow a new company to purchase the debt, however in reality this would take time to source funding at a time when the need for protection for the Company was vital and was required as Soon as possible. Whilst these discussions were in progress, the Company was notified by a creditor of their intention to issue a winding up petition. With this pending action, it was necessary to immediately place the Company into Administration to best preserve the assets of the Company.
3.3 On 28 November 2019, Philippa Smith of Smith & Barnes Insolvency Practitioners Ltd was appointed Administrator of the Company following the filing of a Notice of Appointment of Administrators by the Directors.
Administrators' statement of proposals (2020-01-30) · Companies House register