Wearwell Properties Limited (SC254022): administration
- Status
- Administration ended
- Administration began
- 2015-12-21
- Administrators
- Paul Dounis, Adrian David Allen
- Administrators' firm
- RSM
- Incorporated
- 2003-08-11
- Location
- Edinburgh
- Industry
- 31090 Manufacture of other furniture
Why it went into administration
- Funding withdrawn / unable to refinance
- Property / lease costs
From the administrators' statement
The business was highly geared from the outset, with lending on an interest only basis. Debt servicing was marginal and the Bank had noted that there was a significant reduction in the amouni of rental income collected.
The Bank had agreed with the director a debt reduction pian, predicated on regular property sales and the continuing payment of ali bank interest. The Company was unable to uphold this agreement after property values failed to recover post 2008.
Consequently, following a smail number of tenant voids resulted in the Company being unable to service interest. Additionally, the lack of cash meant that maintenance and refurbishment of the assets could not be properly undertaken meaning that asset quality was deteriorating.
Administrators' statement of proposals (2016-02-17) · Companies House register