Mgsph Limited (09088848): administration
- Status
- Administration ended
- Administration began
- 2019-02-21
- Administrators
- Situl Devji Raithatha
- Administrators' firm
- Springfields Advisory
- Incorporated
- 2014-06-17
- Location
- Leicester
- Industry
- 47290 Other retail sale of food in specialised stores
Why it went into administration
- Creditor pressure / legal action
- Loss of a key customer, supplier or contract
- Sustained trading losses
- Competition / price pressure
From the administrators' statement
The Company was incorporated on 17 June 2014 to operate Pizza Hut Franchises under Franchise Agreements with Yum! Ill (UK) Limited (“Yum”). The first unit was opened in Falkirk on 10 February 2015, a second unit was opened in Stirling on 1 October 2015 and a third unit was opened in Irvine on 16 May 2016. The unit in Irvine was subsequently closed on 28 February 2018 following disappointing trading results.
The Company was part of a group of companies referred to as the RNT Group (“the Companies’), which operated a combined total of seventeen units. The sole director and ultimate beneficial owner of the Companies is Farhat Faheem, who had previous experience in the food industry prior to establishing the businesses. The acquisition, fit out and operation of the units was funded through personal loans, asset finance agreements, a secured loan, and unsecured loans from secondary lenders. There were also intercompany loans between the Companies.
The Companies employed a combined total of 273 members of staff, which included 36 employees of the Company.
Administrators' statement of proposals (2019-03-26) · Companies House register