Premier Trampoline York Limited (09578213): administration
- Status
- Administration ended
- Administration began
- 2023-03-10
- Administrators' firm
- Begbies Traynor
- Formerly
- York Energi Limited; York FO Ltd
- Incorporated
- 2015-05-06
- Location
- York
- Industry
- 93290 Other amusement and recreation activities n.e.c.
Why it went into administration
- COVID-19
- HMRC / tax arrears
- Property / lease costs
- Creditor pressure / legal action
- Weak consumer demand
- Cash flow / liquidity pressure
From the administrators' statement
The Company was incorporated in 2015 to operate as a Trampoline Park under the “Energi” franchise brand. Funding was provided by HSBC and equipment purchased through asset finance to fund the “fit-out” of the park. In addition, the directors and other third parties provided funding to assist with initial working capital and cash flow requirements. Trading commenced during 2016 from leasehold premises situated on the outskirts of York.
The park initially proved extremely popular with the local community and turnover/footfall met with expectations. However, with significant operating costs (primarily the finance repayments and fees associated with the franchise agreement), the Company failed to generate a trading profit until the March 2020 financial year. However, by this stage, arrears had accumulated with HM Revenue & Customs (‘HMRC’) in relation to VAT. In addition, the Company's relationship with the franchisor had broken down. Issues and disagreements in relation to the trading conditions of the franchise agreement and amounts payable under its terms resulted in the position becoming untenable and solicitors were instructed to deal with same. The dispute ultimately led to the business “moving away” from the franchise and re-branding under the trading name “Point Zero’.
The business was forced to close during March 2020 due to the Covid-19 pandemic. A CBILS loan was obtained from HSBC to ensure critical payments were maintained (and cover costs of getting the premises “covid compliant’) and staff were furloughed. Despite re-opening in October 2020 (under the new Point Zero brand), further government enforced lockdowns resulted in the business closing for prolonged periods throughout the next 12 months. When open, trading was at a significantly reduced capacity and losses were incurred. Payments fell further into arrears with HMRC and due to the total breakdown in the relationship with the franchisor, no rent was paid during the pandemic.
Administrators' statement of proposals (2023-03-29) · Companies House register