Grant Central Ltd (09146403): administration
- Status
- Administration ended
- Administration began
- 2017-09-04
- Administrators
- Julie Anne Palmer, Sally Richards
- Administrators' firm
- Begbies Traynor
- Incorporated
- 2014-07-24
- Location
- Salisbury
- Industry
- 74909 Other professional, scientific and technical activities n.e.c.
Why it went into administration
- Cash flow / liquidity pressure
- Management failings / irregularities
From the administrators' statement
The directors first approached Begbies Traynor on 31 August 2017 as a result of certain irregularities found within the Company's financial records. These irregularities had resulted in a liability to HM Revenue & Customs of circa £31,500 and a purported overdrawn directors loan account of £71,000, incurred by a former director who had resigned in June 2016. The Company was suffering from cashflow problems which the directors believed was caused by the overdrawn directors loan account, and attempted to resolve matters by having discussions with the former director and the shareholders. This unfortunately led to a dispute with the shareholders that could not be resolved.
With the increasing cashflow pressure the directors proposed to the shareholders placing the Company into creditors’ voluntary liquidation, however shareholders were against this course of action but offered no solutions to the Company's situation. With the outlook showing no signs of improvement the directors became concerned that the value of the Company would be detrimentally affected and that this may impact on them personally when considered in conjunction with insolvency legislation. Following further discussions with Begbies Traynor the directors decided to place the Company into Administration thereby allowing the business to be marketed for sale in order to gain the best value for its creditors.
Administrators' statement of proposals (2017-11-03) · Companies House register