Capital Karts Limited (08279648): administration
- Status
- Administration ended
- Administration began
- 2019-11-27
- Administrators
- Henry Lan, Asher Miller
- Administrators' firm
- Williams & Partners
- Incorporated
- 2012-11-02
- Location
- London
- Industry
- 93110 Operation of sports facilities
Why it went into administration
- HMRC / tax arrears
- Property / lease costs
- Creditor pressure / legal action
- Weather / natural events
- Weak consumer demand
From the administrators' statement
3.1 The Company was incorporated on 2 November 2012 by friends and business partners Matt Holyfield (“MH”) and Alastair Flynn (“AF”). In August 2013, the Company took out a lease on a derelict warehouse in Dagenham, East London at Unit 1 Rippleside Commercial Estate, London, IG11 ORJ. With a limited budget, and the assistance of family and friends, the site was developed into a world class karting centre, offering the UK’s longest indoor karting track complete with top of the range karts. Capital Karts quickly established itself as one of the premier indoor karting venues in Europe, and since the commencement of trading in November 2013 the Company’s karting offering has grown in popularity every year.
3.2 The Company’s customer base is predominately derived from London, Essex and Kent, and around 45,000 customers race the track each year. The track is multi-award winning and highly regarded in the industry, with a diverse clientele made up of corporate entities, members of the public, schools, colleges, stag parties and charities.
3.3 From the outset of trading the Company had always reinvested any surplus cash back into the business, and despite its growing reputation, recorded an increased loss in 2016. With the objective of targeting the business towards sustained profitability, in 2017 the directors began to explore the possibility of incorporating further activities into the site which would appeal to a wider demographic, increase daily footfall at the premises and thereby maximise the potential for future revenue generation. A plan was devised whereby a mezzanine floor would be constructed, enabling almost half of the karting track to be moved to the raised level, creating a split level track of the same length. A state of the art recreational trampoline park could then be installed in the space freed up following the track re-configuration, creating an additional revenue stream.
Administrators' statement of proposals (2020-01-23) · Companies House register