# Canary Care Limited (08512931)

> Why UK company 08512931 went into administration, from the administrators' statement filed at Companies House, by companydig. Interactive version: https://companydig.co.uk/company/08512931

- **Status:** Administration ended
- **Administration began:** 2018-08-31
- **Formerly:** Canary Systems Ltd
- **Incorporated:** 2013-05-01
- **Location:** Southampton
- **Industry:** 26400 Manufacture of consumer electronics

## Why it went into administration

- Funding withdrawn / unable to refinance
- Cash flow / liquidity pressure

## From the administrators' statement

The directors initially approached us at the instigation of the Company's financier, Mercia Fund Management (‘Mercia’), in May 2018. At that time the Company was looking for an additional round of funding for its next phase of development, being the increase of market penetration. As an alternative the directors were also in discussions with a number of potential purchasers / joint venture partners. Mercia, had funded earlier phases of development but was unwilling to advance further monies as the business was not performing in line with its funding criteria.

In July 2018 the directors received an offer for the shares of the Company. However, in August 2018 it became apparent that the requisite majority of shareholders to approve the sale would not be achieved. As no further funding was available possible, the directors concluded that there was no viable alternative to an insolvency procedure.

Instructions were given to James Cowper Kreston to seek a purchaser for the business via a pre-pack administration on 13 August 2018. The directors identified that the sale would need to be concluded prior to 31 August 2018 as there was insufficient funds to meet liabilities due to at the end of the month.

Statement of proposals: https://find-and-update.company-information.service.gov.uk/company/08512931/filing-history/MzIxNzc2MzI0NmFkaXF6a2N4/document?format=pdf&download=0
Companies House register: https://find-and-update.company-information.service.gov.uk/company/08512931

Contains public sector information from Companies House, licensed under the Open Government Licence v3.0.