# Wearwell Properties Limited (SC254022)

> Why UK company SC254022 went into administration, from the administrators' statement filed at Companies House, by companydig. Interactive version: https://companydig.co.uk/company/SC254022

- **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- Funding withdrawn / unable to refinance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.

Statement of proposals: https://find-and-update.company-information.service.gov.uk/company/SC254022/filing-history/MzE0MjA3MTM2MmFkaXF6a2N4/document?format=pdf&download=0
Companies House register: https://find-and-update.company-information.service.gov.uk/company/SC254022

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