HX2 Maintenance Services Limited (08160773): administration
- Status
- Administration ended
- Administration began
- 2017-02-21
- Administrators
- Lee Van Lockwood, Robert Alexander Henry Maxwell
- Administrators' firm
- Begbies Traynor
- Incorporated
- 2012-07-30
- Location
- Leeds
- Industry
- 43330 Floor and wall covering
Why it went into administration
- HMRC / tax arrears
- Creditor pressure / legal action
- Bad debts / customer insolvency
- Over-expansion / investment not recovered
From the administrators' statement
In 2016, the Company grew quickly as a result of undertaking various work for insurance companies. The additional work for the insurance companies was a significant change from the usual customer base as, historically, the Company predominantly carried out work for both individuals and businesses. Due to this rapid expansion, it was necessary to incur significant capital costs in purchasing vans and equipment required to carry out this additional work.
The Company began to experience cash flow issues as a result of a number of customers delaying payment for the work completed. In particular, incorrect materials purchased by the customer for one labour only contract which resulted in a bad debt of £30k as a dispute then arose with the employer.
Due to the cash flow issues, the Company struggled to keep up with payments to HM Revenue & Customs (‘HMRC’) resulting in a payment plan being proposed to a number of creditors, including HMRC, over a period of 10 months. However, due to the debt to HMRC being higher than initially envisaged when proposing the payment plan, the required payments could not be achieved.
Administrators' statement of proposals (2017-04-27) · Companies House register