Marvelle Management Limited (08869157): administration
- Status
- Administration ended
- Administration began
- 2019-03-08
- Administrators
- Christopher Marsden, Christine Francis
- Administrators' firm
- BDO
- Incorporated
- 2014-01-30
- Location
- Reading
- Industry
- 78200 Temporary employment agency activities
Why it went into administration
- HMRC / tax arrears
- Funding withdrawn / unable to refinance
- Competition / price pressure
- Cash flow / liquidity pressure
- Bad debts / customer insolvency
From the administrators' statement
The Company was incorporated in January 2014 and traded since then as a recruitment agency operating from 9 leased premises across South Wales and Avonmouth. It provided temporary staff to businesses within the commercial, construction and trades, contact centres, driving services, food manufacturing, hospitality and catering, industrial and legal sectors. Prior to administration, it employed 37 permanent members of staff and supplied circa 500 temporary staff members to around 180 active customers.
During late 2018, an under payment to HM Revenue & Customs (“HMRC”) of circa £379,000 was identified. The Company arranged to repay this debt under a Time to Pay (“TTP”) arrangement at a rate of £38,000 per month from December 2018.
Trading in December 2018 was significantly reduced in comparison to previous years. The Company usually achieved sales of circa £150,000 during December, but in 2018 sales were circa £38,000. At around the same time, the Company identified several bad debts from customers totalling circa £235,000, of which £171,000 relates to customers who had entered insolvency processes. This situation, alongside the TTP arrangement, placed significant pressure on the Company’s cash flow.
Administrators' statement of proposals (2019-03-29) · Companies House register