HO Sparkles Ltd (09943382): administration
- Status
- Administration ended
- Administration began
- 2019-12-18
- Administrators
- Paul Ellison, Gareth Wyn Roberts
- Administrators' firm
- KRE Corporate Recovery
- Incorporated
- 2016-01-11
- Location
- Reading
- Industry
- 47599 Retail of furniture, lighting, and similar (not musical instruments or scores) in specialised store
Why it went into administration
- Loss of a key customer, supplier or contract
From the administrators' statement
3.1 KRE Corporate Recovery LLP (“KRE”) was called by the director of the Company, Daniel Chapman (“DC”) on 23 October 2019. Prior to this call neither KRE nor any of its partners or staff were aware of the Company or its director and no-one at KRE had had any prior dealings with the Company or its director.
3.2 We were advised that the Company had suffered difficulties with its warehouse and logistics provider resulting in an inability to deliver a significant number of customer orders. As a consequence, many of the customers cancelled their orders necessitating refunds to be made which had a significant adverse impact on the level of sales and on cash flow. In addition, the Company’s provider of credit agreements to customers reduced the funding it made available to the Company which further exacerbated pressure on cash flow.
3.3 DC therefore decided that he needed professional advice on his duties as a director and called KRE after an online search of Insolvency Practitioners in the Thames Valley. We met with DC and the Company’s Non-Executive Chairman Alasdair Dunn (“AD”) that afternoon and after further consideration of the Company’s financial situation, and discussions with potential funders, the Board decided that the Company could not continue to trade by reason of its liabilities and no further orders were accepted from customers (and a block put on the Company’s website) with effect from 24 October 2019.
Administrators' statement of proposals (2020-01-24) · Companies House register