Lyphe Group Limited (12142186): administration
- Status
- Administration ended
- Administration began
- 2023-11-17
- Administrators
- Cameron Gunn, Ben David Woodthorpe
- Administrators' firm
- ReSolve
- Formerly
- ECH Medical Holdco Limited
- Incorporated
- 2019-08-06
- Location
- London
- Industry
- 64209 Activities of other holding companies n.e.c.
Why it went into administration
- Regulatory change or action
- Cash flow / liquidity pressure
- HMRC / tax arrears
- Competition / price pressure
- Weather / natural events
From the administrators' statement
The increased demand, following the UK legislative change to medicinal cannabis supplies, initially enabled the Company to grow. However, the sector soon became flooded with new entrants and the Company struggled to retain market share due to the increased competition.
Furthermore, product supply contracts often required 50% payment up front which historically had been paid by third party distributors. However, following a change to the terms and conditions of supply, these costs had to be met directly by the subsidiary companies which put a considerable strain on the groups’ cash flow.
The position was exacerbated by some of the available funding having been allocated to further expansion projects which then failed to generate revenue at the anticipated levels and impacted yet further on the cash flow.
Administrators' statement of proposals (2024-01-16) · Companies House register