The Funky Appliance Company Limited (10248770): administration
- Status
- Administration ended
- Administration began
- 2023-11-03
- Administrators
- Andrew James Pear, Milan Vuceljic
- Administrators' firm
- Moorfields
- Formerly
- The Funky Iron Company Limited
- Incorporated
- 2016-06-23
- Location
- London
- Industry
- 27510 Manufacture of electric domestic appliances
Why it went into administration
- Creditor pressure / legal action
From the administrators' statement
The Company was initially introduced to Moorfields via Seedrs, a shareholder, on 3 October 2023. The Company’s directors explained there had been a number of recent difficulties within the business, summarised as follows:
• Following a breakdown in the relationship with their main distributor, the distribution agreement was terminated. The Company had been in lengthy discussions negotiating an exit with this distributor, which ultimately concluded with the Company buying back the stock held by the distributor at the original selling price, which materially impacted margins. The total settlement was c£250,000 which impacted cash reserves.
• The Company had an informal management team, who were not employees, but made up of minority investors / stakeholders (“the Management Team”). We understand there was a breakdown in the various relationships which led to resignations and questions regarding the financial stability and solvency of the Company.
Administrators' statement of proposals (2023-12-27) · Companies House register