Redcat Leased Pubs Limited (13265680): administration
- Status
- Administration ended
- Administration began
- 2024-03-28
- Administrators
- Stephen John Absolom, Nicholas Holloway
- Administrators' firm
- Interpath Advisory
- Incorporated
- 2021-03-15
- Location
- London
- Industry
- 56302 Public houses and bars
Why it went into administration
- Weak consumer demand
- Rising costs / inflation
- Funding withdrawn / unable to refinance
From the administrators' statement
Since the acquisiton of the portfolio, the Company faced several well documented trading challenges, including rising costs and the cost-of-living crisis. The impact of low consumer confidence coupled with a slow recovery from Covid lockdowns, continued to adversely affect RCLP’s ability to generate sufficient revenue to meet increasing fixed and other operational costs since the transaction in 2021.
Management took several steps to mitigate losses across its property portfolio, including incurring capital expenditure of c£0.2 million on The Elmbridge Arms and agreeing lease surrenders of The Bird in Hand, Forest Hill (November 2022) and The Manor House, Beckenham (January 2023).
However, despite these steps, losses continued to be incurred at the majority of the Company’s sites. These losses have been funded by other entities in the wider Redcat group to the extent that the Company currently owes intercompany liabilities totalling £9,3 million. The Group was unwilling to continue funding these losses indefinitely.
Administrators' statement of proposals (2024-05-17) · Companies House register