# Highlight Green Acres Limited (15063398)

> Why UK company 15063398 went into administration, from the administrators' statement filed at Companies House, by companydig. Interactive version: https://companydig.co.uk/company/15063398

- **Status:** Administration ended
- **Administration began:** 2024-01-25
- **Administrators:** Mark Malone, Huw Powell, Paul David Wood
- **Administrators' firm:** Begbies Traynor
- **Incorporated:** 2023-08-10
- **Location:** Bristol
- **Industry:** 31020 Manufacture of kitchen furniture

## Why it went into administration

- Sustained trading losses
- Weak consumer demand
- Competition / price pressure

## From the administrators' statement

The Company was incorporated on 10 August 2023 to facilitate the purchase of the business and assets of Mereway Kitchens Limited (“MKL”) from the Joint Administrators’ of MKL (“JA”). MKL had been incorporated in 1986 and Lee Causer and Danny Dartnaill of BDO LLP were appointed JA on 18 August 2023, with the Company’s purchase of the business and assets completed on the same date. The director of the Company had no prior involvement in MKL. Begbies Traynor Group (“BTG”) provided general advice to the Company from 10 August 2023 comprising a high-level strategy in respect of the purchase of the business and assets of MKL from administration. No structuring, financial or other due diligence was included in the scope of works, with detailed advice provided by others, the fee agreed was £2,500 plus VAT.

The main trading activity of MKL and subsequently the Company was the manufacture of kitchens, which were predominantly sold via intermediaries including an extensive network of dealers also to the John Lewis Partnership, which historically accounted for approximately a quarter of sales. The Company traded from three premises in Birmingham under a license to occupy (“LTO”) agreed by MKL dated 18 August 2023. This licence was due to expire on 17 February 2024, so would have required to have been extended by JA or lease assignments / new leases would have been required to have been agreed direct with the landlords.

The MKL business has been trading at a loss of over £100,000 per month on average (according to information in the JA proposals) and so substantial investment was required and made by the Company’s shareholder, who are estimated to be owed in excess of £1.5 million. Initially it appeared that a successful turnaround might be possible, with management accounts indicating that the Company achieved approximately break-even trading during October and November 2023. However, the impact of MKL going into administration in August 2023 appears to have significantly impacted customer confidence, which was likely exacerbated by the fact that notice of MKLs proposed administration became public on 4 August 2023, some 14 days prior to the sale completing. This uncertainty, plus a weaker market with falling consumer demand as a result of economic factors, saw a significant reduction in order intake and the Company was unable to maintain the required sales volumes needed to make the business profitable.

Statement of proposals: https://find-and-update.company-information.service.gov.uk/company/15063398/filing-history/MzQxMjYwMjkzMmFkaXF6a2N4/document?format=pdf&download=0
Companies House register: https://find-and-update.company-information.service.gov.uk/company/15063398

Contains public sector information from Companies House, licensed under the Open Government Licence v3.0.