OTO International Limited (11389551): administration
- Status
- Administration ended
- Administration began
- 2024-06-25
- Administrators
- Colin David Wilson, Trevor John Binyon
- Administrators' firm
- Opus Restructuring
- Formerly
- Hedony Ltd
- Incorporated
- 2018-05-30
- Location
- Milton Keynes
- Industry
- 46900 Non-specialised wholesale trade
Why it went into administration
- Rising costs / inflation
- Sustained trading losses
From the administrators' statement
As the Company’s position was neither improving nor expected to improve, the directors believed it unviable to continue trading and sought advice regarding the Company’s solvency.
The Joint Administrators were introduced to the Company director, James Bagley, on 9 May 2024. Discussions took place as regards the Company’s current position and the potential options available to the Company. The various options for the Company were discussed with Administration determined as the most appropriate option to preserve the remaining value in the Company’s business and assets. Moreover, cash flow forecasts showed that trading would be loss-making, with or without an insolvency process.
The prospect of the Company being placed into Administration and then trade continuing during an Administration process was considered. However, it was quickly apparent that the increased costs of doing so would outweigh any benefit to creditors. Trading would also not necessarily have increased the likelihood of the business remaining a going concern.
Administrators' statement of proposals (2024-08-21) · Companies House register