Kicking Horse Ltd. (08700555): administration
- Status
- Administration ended
- Administration began
- 2020-08-06
- Administrators' firm
- Opus Restructuring
- Formerly
- Two Bars Ltd.
- Incorporated
- 2013-09-20
- Location
- Milton Keynes
- Industry
- 46342 Wholesale of wine, beer, spirits and other alcoholic beverages
Why it went into administration
- COVID-19
- Competition / price pressure
From the administrators' statement
The Company was severely affected by the advent of the Covid-19 pandemic in March 2020. The pandemic had a large adverse effect on the hospitality industry, the Company’s main market, with their customer base suspending trading over the lockdown period from March through to July 2020.
As a result, the Company saw a deterioration of its cash flows reducing its ability to pay its creditors. The invoice discounting facility provided by SBL had also been suspended from March to July 2020. Resumption of trade in July 2020 provided the Company with some headroom under the SBL facility. However, once access to the facility was granted, the Company realised the headroom provided by the facility was lower than their expectations and it struggled to make collections from its aged debtors who were also impacted by the pandemic.
After discussions with creditors and investors it was concluded that the Company would likely worsen their position with creditors if it continued to trade. The expectation that market conditions would continue to be fragile and uncertain for the foreseeable future meant that there was not a viable reason to continue trade.
Administrators' statement of proposals (2020-11-28) · Companies House register