Aromaworks Limited (08039193): administration
- Status
- Administration ended
- Administration began
- 2022-08-12
- Administrators
- Benjamin John Wiles, Geoffrey Wayne Bouchier
- Administrators' firm
- Kroll
- Incorporated
- 2012-04-20
- Location
- London
- Industry
- 47789 Other retail sale of new goods in specialised stores (not commercial art galleries and opticians)
Why it went into administration
- Management failings / irregularities
- Parent or group failure
- Competition / price pressure
From the administrators' statement
In June 2022, the Managing Director of the Company passed away. Following this, the CEO reported some financial irregularities to the Secured Creditor, and it was apparent the Company was insolvent on both a cash flow and balance sheet basis. These financial irregularities, together with the Company’s operating loss were the primary courses of the Company’s insolvency.
Following the uncovering of the financial irregularities, Kroll was engaged by the Company on 26 July 2022 to provide advice on the Company’s current financial position and review its cash flow, review the options available to the Company and commence an accelerated marketing process to attempt to find investors or a purchaser for the Company and/or its business and assets.
The Company was in breach of its invoice discounting facility with the Secured Creditor. A demand letter was served upon the Company on 27 July 2022. The Company failed to repay its indebtedness in accordance with the demand letter.
Administrators' statement of proposals (2022-09-05) · Companies House register