2M Business Services Ltd (08505849): administration
- Status
- Administration ended
- Administration began
- 2014-04-01
- Administrators
- Simon Matthew Gwinnutt
- Administrators' firm
- Greenfield Recovery
- Incorporated
- 2013-04-26
- Location
- Clarke Street
Why it went into administration
- Cash flow / liquidity pressure
From the administrators' statement
The Company had run into trading difficulties and in March 2014, it became apparent to the Director that the Company would not meet its March staff payroll (due to be paid in early April). Also, the Director was aware that the Company had insufficient funds to meets its hability to its franchisor
The Director had made the Company’s franchisor aware of the position and the franchisor could have terminated the Company's franchise in March, due to the Company’s insolvent position and its inability to pay tts franchisor’s current liability. In the circumstances, the Director of the company had no viable option, other than to effect a formal insolvency procedure; and a pre-pack administration was clearly the best option to minimise the crystallisation of certain contingent liabilities and to maximise the asset sale proceeds
The Company’s stocks are shown in the asset sale agreement, as having been sold for £1, The franchisor retained legal ownership of the Company‘s stocks, under retention of title provisions contained within its contractual trading terms
Administrators' statement of proposals (2014-04-16) · Companies House register