La Patisserie DES Reves UK Limited (08490022): administration
- Status
- Administration ended
- Administration began
- 2016-05-06
- Administrators
- Michael Stephen Elliot Solomons, Andrew James Pear
- Administrators' firm
- BM Advisory
- Incorporated
- 2013-04-16
- Location
- London
- Industry
- 96090 Other service activities n.e.c.
Why it went into administration
- Property / lease costs
- Parent or group failure
- Competition / price pressure
From the administrators' statement
The Company was set up in April 2013 to replicate an existing French business model and sold confectionery and cakes from shops in Marylebone and South Kensington, with a production facility in Chiswick. While the UK business was In Its infancy it was supported financially by its French sister company. However, the UK business continued to trade at a loss, which management predominantly attributed to the fact that the French model did not work in the UK market The shops did not carry a lunch menu, only a dessert menu and it was felt that this did not appeal to the local consumer/tourist It is also understood that the prices were not competitive for the local market. Furthermore, management advised that whilst the Marylebone shop did not have suffictent indoor seating for customers, the South Kensington shop was too large for purpose. With high rents in desirable areas of London, significant pressure was put on the Company's cash flow and the management team began to look at ways to restructure the business and reduce its overheads
In late 2015, a decision was made to seek interested parties to take assignment of the lease at South Kensington, with a view to closing the shop After a marketing process, an Italian ice cream business submitted an offer and the new business was acceptable to the landlord However, the negotiations were protracted and extensive architect drawings were required in order to submit a planning permission application for required changes to the building These negotiations were still ongoing in March 2016.
During this same time, in February 2016, the sister company was placed under a formal insolvency procedure in France. Due to the uncertainty regarding the planning permission application and no immediate resolution of the South Kensington assignment, the sister company could no longer financially support the Company while it was restructured As a result, the Company effectively ceased to trade at the end of March 2016 and all employees were made redundant The management team then started seeking interested parties to take assignment of all three leases, being its only major assets.
Administrators' statement of proposals (2016-06-30) · Companies House register