JTR Furniture Ltd (09719783): administration
- Status
- Administration ended
- Administration began
- 2016-02-02
- Administrators
- Clive Morris
- Administrators' firm
- Begbies Traynor
- Incorporated
- 2015-08-05
- Location
- Preston
Why it went into administration
- Property / lease costs
From the administrators' statement
JTR Furniture Ltd was incorporated on 5 August 2015, under the directorship of John Ryding, with the intention of operating as a furniture retailer On 21 August 2015 the Company entered into a lease for a property at 62 Market Street, Wigan, for the purpose of using the property as its trading premises The term of the lease was for five years, with an annual rent of £25,000 and a six month payment break at the start of the lease
Pnor to incorporation, John Ryding had verbally agreed an investment of £10,000 into the business by a silent partner, in order to buy initial stock for retail However, the silent partner reneged on their investment, which became clear to the director after the Company had entered into the lease for 62 Market Street Without an investment, the Company would be unable to buy sufficient stock to commence trading The director therefore sought investment from various other parties, without success
By February, the Company had not commenced trading, and with the first rent payment falling due on 21 February, the director sought advice from local mmsolvency practitioners Marshall Peters Ltd It was determined that the Company was insolvent on both a cash flow and balance sheet basis, given that the Company did not trade and had no assets, but had accrued business rates and rent arrears which it could not pay
Administrators' statement of proposals (2016-04-13) · Companies House register