Pura Collagen Limited (12616097): administration
- Status
- Administration ended
- Administration began
- 2024-04-03
- Administrators
- Gareth Howarth
- Administrators' firm
- Path Business Recovery
- Formerly
- Pura Brands Limited
- Incorporated
- 2020-05-21
- Location
- Manchester
- Industry
- 47910 Retail sale via mail order houses or via Internet
Why it went into administration
- COVID-19
- Weak consumer demand
- Rising costs / inflation
- Funding withdrawn / unable to refinance
- Over-expansion / investment not recovered
- Weather / natural events
From the administrators' statement
The Business first started expériécing diffculties in 2022, when the Company had launched into 700 stores of a well- known, British-based chain of health food and struggled to keep up with demand. The Company began to experience cashflow issues due to asymmetry with the Company's manufacturing process and the payments from the retailers.
As part of the Company’s growth strategy, they had invested heavily in digital marketing spending c. £500,000.00. However, the unexpected, immediate growth meant that the Company needed to purchase stock upfront for work in progress which it would only see a return on in 8-9 months, causing cashflow issues to snowbail.
Additionally, on the back of the Covid-19 pandemic and the Cost-of-Living Crisis, there has been a marked increase in expenses and cost of sales, primarily due to rising inflation affecting the prises of raw material, production and shopping. This hurt the Company's margin and rendered the profitability of a number of their lower yielding accounts.
Administrators' statement of proposals (2024-04-27) · Companies House register