Frost Burgers Limited (10943974): administration
- Status
- Administration ended
- Administration began
- 2022-10-07
- Administrators
- Paul Stanley, Jason Dean Greenhalgh
- Administrators' firm
- Begbies Traynor
- Incorporated
- 2017-09-04
- Location
- Liverpool
- Industry
- 56102 Unlicenced restaurants and cafes
Why it went into administration
- COVID-19
- Weather / natural events
- Rising costs / inflation
- Cash flow / liquidity pressure
- Creditor pressure / legal action
- Property / lease costs
- Rising interest rates
From the administrators' statement
The below statement has been provided by the Company's sole director as an explanation to creditors of the events feading up to the appointment of administrators.
Frost Burgers Limited opened its door on 1 November 2018 in Liverpool city centre. It was an incredibly successful start and continued to be up until April 2019, when the premises flooded. The premises closed for two months whilst repair work was carried out. The insurers did not fully cover the cost of the repairs due to it being a newly incorporated company. There was no proof of long-term income and the income gained from the strong first half year had been spent. However, the director did not give up and trading recommenced, experiencing strong trading once again with the best months being October and November 2019.
Due to the strong trading conditions, the director saw an opportunity to expand the business and began searching for a suitable premises in Manchester. A suitable location was identified in February/March 2020; however, due to the onset of the coronavirus pandemic, the company pulled out of signing up to a new lease. The company also had no option other than to stop trading in Liverpool and it remained closed throughout with the exception of facilitating deliveries and takeaways only. The turnover was adversely impacted from the onset of the pandemic due to the reduced number of customers and delivery company costs. The isolation periods of employees forced the company to close on various occasions, unfortunately, the company was still incurring operating costs and other expenditure during this time.
Administrators' statement of proposals (2022-11-22) · Companies House register