Drop the Hammer Limited (12420393): administration
- Status
- Administration ended
- Administration began
- 2022-01-20
- Administrators' firm
- Kroll
- Incorporated
- 2020-01-23
- Location
- Manchester
- Industry
- 45320 Retail trade of motor vehicle parts and accessories
Why it went into administration
- Cash flow / liquidity pressure
From the administrators' statement
The roles of the Directors were defined as Benjamin Gould being the Operations Director dealing with the day-to-day trading matters. Neil Worsley was not involved in trading matters but injected £1.3m of investment funds to pay for trading and overhead costs. Trading for the first year, ending 31 March 2021, resulted in losses of c£ 119,000. Losses continued to increase during the remainder = of 2021 and the Directors looked to review if expenditure and overhead could be reduced, as well as looking for additional income streams. Unfortunately, the business continued to deteriorate and mindful of their duties, the Directors sought professional advice and approached Kroll in December 2021. Following the Directors’ initial discussions with Kroll, the Directors undertook to review the cash requirements of the business. Following this review, the cash requirements were deemed to be too high to continue trading and the Directors requested further discussions with Kroll.
Kroll held a virtual meeting with the Directors on 10 January 2022 to discuss the options for the Company going forward, including the insolvency options.
Following a number of discussions with Kroll regarding the Company’s financial position, Kroll were formally engaged on 13 January 2022 to provide contingent restructuring and insolvency advice.
Administrators' statement of proposals (2022-03-18) · Companies House register