Spraytech Coachworks Ltd (11713953): administration
- Status
- Administration ended
- Administration began
- 2020-07-15
- Administrators' firm
- Begbies Traynor
- Incorporated
- 2018-12-05
- Location
- London
- Industry
- 45200 Maintenance and repair of motor vehicles
Why it went into administration
- COVID-19
From the administrators' statement
The Company was incorporated o1 on 5 December 2018 by the former owners / directors. The Company subsequently acquired the business of a previous associated company, Spraytech Group of Companies Ltd, that traded from premises at 222 Alma Road, Enfield, and began trading in March 2019 from the same premises. The trading activities were that of a specialist accident and mechanical repair centre, working directly with insurance companies and accident management networks:
‘On 9 July 2019, Palace Group Holdings Ltd, a special purpose holding company, acquired the shares
in the Company from the former shareholders, the Charalambous family. The Charalambous family took a Debenture over the Company by way of a guarantee against all monies due from Palace Group Holdings Limited under that share sale agreement. It was the intention of the group to raise additional financing to facilitate business growth. This was achieved however at a far lower level than had originally been anticipated. From time to time, the new ownership of the business traded below profit expectation and disagreements on strategy at Board level, going into the final quarter of 2019, meant that the focus.was taken away from the day to day management of the Company. Losses were incurred in November and:December 2019 and, although revenues increased in January and February 2020, the knock-on effect of the previous poor period meant that cash flow was strained and, consequently, work-flow suffered.
Administrators' statement of proposals (2020-09-22) · Companies House register