Bricks D2 Feuhold Limited (09651750): administration
- Status
- Administration ended
- Administration began
- 2019-12-16
- Administrators
- Alistair Mcalinden, Howard Smith
- Administrators' firm
- KPMG
- Incorporated
- 2015-06-23
- Location
- Leeds
- Industry
- 68100 Buying and selling of own real estate
Why it went into administration
- Bad debts / customer insolvency
- Sustained trading losses
From the administrators' statement
From the point of opening, the Hotel operated within difficult market conditions. The performance of the hotel market in Aberdeen is inextricably linked with the oil and energy sector, and therefore started to decline as a result of the fall in crude oil price in 2014. This led to a 52% reduction in revenue per room within the Aberdeen hotel industry from 2014 through to 2017, giving rise to a challenging hotel market in this geographical location.
From the cammencement of trading, the Hotel under-performed its business plan. As a result the companies within the D2 Group have been unable to service the interest burden on senior debt since April 2018. This non-payment created a default event for the Company’s fellow subsidiary, Bricks D2 Propco Limited. This caused a default for all members of the D2 Group (including the Company) under the guarantee structure.
A parent company of the D2 Group, Bricks Capital Holdings Limited, sought advice in respect of the default event from KPMG in June 2018. An initial phase of work was undertaken by KPMG and a report was issued the same month. The directors subsequently sought to negotiate a restructure of the D2 Group’s debt with the Secured Lenders. We understand other advisors were engage to assist with these discussions. Ultimately a consensual restructuring could not be achieved.
Administrators' statement of proposals (2020-01-08) · Companies House register