administration Archives - Page 5 of 5

Harrogate shop closes as sofa company enters administration

The Harrogate branch of Sofa Workshop has closed after the company entered administration yesterday.

The Parliament Street shop is no longer trading and the company’s website has been closed, after administrators PriceWaterhouse Cooper were appointed.

The administrators said one shop in London would remain open for up to 14 days to sell remaining stock. The company’s order book has been sold to Timothy Oulton United Kingdom Ltd, also owned by parent company Halo, so any outstanding orders will be fulfilled.

Toby Banfield, joint administrator and PwC partner, said:

“Unfortunately, given the sustained level of losses, the directors had no option but to appoint administrators to protect the creditors of the company. Sadly, this has resulted in 77 redundancies having to be made today. We will do all we can to support workers impacted by the administration.”

It has not been confirmed how many jobs have been lost at the Harrogate shop.

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11 Welcome to Yorkshire staff made redundant

Nearly half of the total number of staff at Welcome to Yorkshire have been made redundant after the organisation was placed into administration.

Rob Adamson, Michael Kienlen and Daryl Warwick of Armstrong Watson LLP were appointed joint administrators of the troubled tourism body earlier this month.

The move followed “increasingly challenging” financial circumstances for Welcome to Yorkshire, which faced “a task of securing sufficient funding”, according to chairman Sir Peter Box CBE.

In a statement, the administrators said that 11 staff had now been made redundant with 12 retained.

The statement added:

“Welcome to Yorkshire had a number of ongoing projects at the time it was placed into administration.

“The joint administrators are currently engaging with the various stakeholders to determine whether these projects can continue in the short-term whilst they seek to establish whether a buyer can be sought for the business and assets.

“Whilst this process is ongoing, the business is operating using a reduced workforce. Regrettably 11 employees were made redundant on Tuesday with the remaining 12 members of staff currently being retained.

“The joint administrators are aware that Welcome to Yorkshire has a large membership base and the subscription position will be reviewed in the coming days. The joint administrators have been advised that all advance subscriptions were held separately by Welcome to Yorkshire. All relevant parties will be contacted in due course.

“Unfortunately a number of events that were due to take place in the coming weeks will now be cancelled – affected parties will be contacted as soon as possible.”

Controversy and cash flow problems

Administration followed a troubled few years for Welcome to Yorkshire.

In September, James Mason resigned as chief executive and the body had to approach local councils to help bail it out financially during the covid pandemic in 2020.

Harrogate Borough Council and North Yorkshire County Council gave Welcome to Yorkshire £31,000 and £290,000 respectively to plug its £1.4 million funding gap.

The body also had to take out a £500,000 loan in September 2019 from North Yorkshire County Council to keep it afloat.

In March 2019 there was controversy when former boss, Sir Gary Verity, resigned on health grounds. He later faced allegations of bullying and inappropriately claiming expenses, which he denied.

Two inquiries carried out after Sir Gary’s resignation cost the tourism body £482,500.

Welcome to Yorkshire enters administration

Troubled tourism organisation Welcome to Yorkshire has been placed into administration.

In a statement this afternoon, Sir Peter Box CBE, chair of the organisation, said it was with “deep regret” that the board had taken the decision.

He said the impact of covid and the “task of securing sufficient funding” had made the situation at the tourism body “increasingly challenging”.

Sir Peter Box said in his statement:

“The past three years have been incredibly difficult for Board members and staff as we have endeavoured to deal with well-publicised legacy issues.

“These matters, coupled with the impact of covid and the task of securing sufficient funding from the public and private sectors to place WtY on a sound financial footing, have made the situation increasingly challenging.

“The de Bois review of Destination Management Organisations could have created the opportunity for WtY to be given the structure and long-term funding required to move on, grow and develop into the organisation we believe it should be on behalf of Yorkshire and its people.

“Sadly, the decision of the Yorkshire leaders not to commit to a multi-year funding package, whilst understandable, removed that pathway and means that WtY cannot continue in its present form.

“Most importantly, I want to pay tribute to the team of talented and dedicated professional staff who have continued to do remarkable work in the toughest of circumstances to promote Yorkshire’s many attractions to the world. I offer my heartfelt thanks and wish them well in their future careers.

“I must also place on record my gratitude to those board members who have remained with WtY, working selflessly in a collective effort to save the organisation from closure.

“It is my sincere hope that the public sector will recognise the value of a new regional Destination Management Organisation to build on the many achievements of WtY.

“This can offer our tourism industry the chance to move forward with a focused approach, deliver on regional priorities, and secure the best outcomes for everyone who visits, lives, works and studies in Yorkshire.”

Rob Adamson, Michael Kienlen and Daryl Warwick of Armstrong Watson LLP have been appointed as joint administrators of Welcome to Yorkshire.

Controversy and cashflow problems

The decision follows a troubled few years for Welcome to Yorkshire.

In September, James Mason resigned as the organisation’s chief executive and the body had to approach local councils to help bail it out financially during the covid pandemic in 2020.

Both Harrogate Borough Council and North Yorkshire County Council gave Welcome to Yorkshire £31,000 and £290,000 respectively to plug its £1.4 million funding gap.

The body also had to take out a £500,000 loan in September 2019 from North Yorkshire County Council to keep it afloat.

It also faced allegations from Sir Thomas Ingilby, owner of Ripley Castle and Gardens, that the body had become “completely unaccountable”. Its former chief executive defended the allegations in an interview with the Stray Ferret.

The tourism body’s worries stem back as far as March 2019 when it was hit by controversy after former boss, Sir Gary Verity, resigned on health grounds. He later faced allegations of bullying and inappropriately claiming expenses, which he denied.

Two inquiries carried out after Sir Gary’s resignation cost the tourism body £482,500.

Paul Scriven, a former leader of Sheffield City Council and a Liberal Democrat peer, told the House of Lords Welcome to Yorkshire had a “culture of toxicity” and misused public funds.

26 jobs saved with acquisition of Ripon firm Ebor Concretes

A total of 26 jobs in Ripon have been saved by the acquisition of troubled company Ebor Concretes.

The firm, which was founded in 1942 and is based at Ure Bank Top, went into administration late last year.

But it was announced today that Nottingham firm JP Concrete Products had acquired it.

Philip Cavalier-White, director of JP Concrete Products, said:

“We are delighted to have been able to secure the future for Ebor Concretes’ factory and staff.

“We saw great value in the team of people and are excited about the future as we develop the site and staff as part of our wider business.”

Leeds-based, Armstrong Watson’s restructuring and insolvency partners Rob Adamson and Mike Kienlen assisted with the accelerated sale of the business.

In a statement today, Armstrong Watson said it worked in conjunction with BPI Asset Advisory to find two bidders keen to proceed with the acquisition. It added that ‘everything was heading in the right direction until the end of November, when the director unexpectedly passed away’.

However, the deal has now been finalised.

Mr Adamson said:

“Our job is to help people and businesses address their challenges and find solutions. The director’s sudden passing caused a few issues, however we worked with the family who were keen to proceed with the sale.

“The strategy was simple — keep the business trading whilst we tried to complete the sale process.”

Ebor Concrete, which designs and manufactures precast concrete products for UK structural and civil engineering construction projects, previously entered administration in 2019 with the loss of 30 jobs.

JP Concrete Products has been supplying precast concrete products to the construction and agricultural markets since 2007 and has sites in Nottingham, Devon, East Sussex, Liverpool and Yorkshire.

Administrators reveal state of Harrogate firm CNG Energy’s finances

The state of CNG Energy’s finances has been revealed after its administrators published its first report into the company.

The Harrogate-based company, which had offices on Victoria Avenue, fell victim to spiralling wholesale gas and electricity prices and went out of business last year.

A report published by Interpath Advisory, the administrators appointed to take charge of the company, has revealed CNG owes £3.6 million to HMRC and other “secondary preferential creditors”.

Although the administration process is still in the early stages, the report says it expects to pay “a dividend” to those creditors.

The report says:

“Based on current estimates, we anticipate that secondary preferential creditors should receive a dividend.

“We have yet to determine the timing and quantum, but we will do so when we have completed the realisation of assets and the payment of associated costs.”

The company also owes more than £4 million to trade creditors and £6 million to consumer creditors.

London-based IT consultancy firm Gentrack UK Ltd is owed £450,759 and is among the highest creditors in the report.

Meanwhile, the company has also made all but 21 employees redundant. CNG employed around 145 staff in Harrogate.

Staff still working are currently assisting with the transition of customers over to new suppliers.

Company was operating on ‘thin margins’

Administrators also found that the company had been experiencing financial difficulty for some time due to “significant cash flow pressures primarily caused by sharp price increases in wholesale gas prices and the general volatility in the energy market”.

The company was already operating on “thin margins” prior to the covid pandemic and had taken out a secured loan of £35 million from Glencore, a multi-national oil and gas firm.

However, the failure of a number of key customers and spiralling wholesale costs left the company unable to finance itself. The report says:

“In the absence of the financial and operational support of CNG Wholesale and other group entities, the company did not have the financial resources required to operate as a standalone business or bear the £35 million loan that was due to Glencore.

“As a result, the directors and Glencore began to explore ways to facilitate an orderly exit from the market.”

Harrogate shoppers say Debenhams will be much missed

Shoppers in Harrogate have spoken of their disappointment that Debenhams is to close after the company announced it was entering administration.

A failed deal with another major retailer means the company is set to enter liquidation.

The Harrogate store reopened yesterday offering shoppers their usual products at discounted prices.

But staff face uncertain futures as they await news of a confirmed closure date. The demise of Debenhams came a day after Ripon’s only department store Wrens, announced it would not be opening again after lockdown.

Shopper Rose Dykes was among those sad to see Debenhams go. She said:

“Debenhams has been here for a long, long time.

“I think it will be really missed in Harrogate.”

Rose says the store will be ‘missed’ in Harrogate.

Debenhams in Harrogate set to close as company enters administration

Staff at Debenhams in Harrogate face anxious futures in the wake of today’s news that the company is due to be wound-up.

Debenhams employs 12,000 staff overall and its department store on Parliament Street in Harrogate has been a local shopping institution.

Debenhams confirmed its Harrogate store will reopen tomorrow. All stores are due to continue trading until stock is cleared.

But the outlook is bleak for staff as the festive season approaches.

The retail giant, which was founded 242 years ago, has been in administration since April. The collapse of a possible deal with JD Sports means the business is now set to enter liquidation.

Many High Street stores were struggling even before the pandemic. The retail group Arcadia announced yesterday it had entered administration, and shops will be desperate for a Christmas boost when they re-open tomorrow.

Harrogate’s Jaeger store faces uncertain future

The future of Harrogate’s Jaeger store is uncertain after the company entered administration today.

Parent company Edinburgh Woollen Mill has so far failed to find a buyer for Jaeger and its sister company Peacocks.

The two companies, which between them have 4,700 staff and almost 500 stores, have both gone into administration.

No redundancies or store closures have been announced yet.

At the end of last month, ‘closing down sale’ notices were displayed on the Harrogate shop front window in Cambridge Crescent.

Today’s announcement is another example of the devastating impact of the pandemic on high street retail. Local businesses had warned of the impact of a second lockdown.

Edinburgh Woollen Mill and Ponden Homes also went into administration this month. Both had shops on Ripon high street. They also belong to the Edinburgh Woollen Mill group.

Jaeger had not replied to the Stray Ferret by the time of publication.

Future of Harrogate store uncertain as Debenhams files for administration

Debenhams could be missing from Harrogate town centre once it re-opens following the coronavirus crisis, after the national chain filed for administration.

It is the second time that the company has called in administrators, and it said the move was designed to get it through the current challenges in order to re-open stores once restrictions are lifted.

However, it is unclear how many and which of its branches will re-open, with 50 permanent store closures already announced. One Harrogate business leader said he was unsurprised by the news, as the chain had been in trouble for some time, and he did not expect the Harrogate store to re-open.

Bob Kennedy, chairman of Harrogate BID, said: “I’m sure there will be a Debenhams that comes out of administration. I would be very surprised if the Harrogate store was part of their plans.”

Mr Kennedy said he felt it was more likely the building would be split into smaller retail units on the ground floor and residential above. Such a large building was not likely to be appealing to many retailers, he said, as changes on the high street continue to affect brands’ needs.

Debenhams on Parliament Street, Harrogate

The size of the Debenhams store makes it unlikely to appeal to a single retailer, according to Bob Kennedy

Regarding the pressures on other town centre businesses while the coronavirus continues, Mr Kennedy said the BID is doing all it can to ensure they make a strong start once trading is possible again.

“While nothing can be done physically at the moment, the board members are trying to put things in place so when we do all get re-open we are in the best possible position to try and catch up on some trade we’ve lost,” he said.

“One of the main priorities is to make sure the town has had a good deep clean. Then to focus on the autumn and the run up to Christmas and making sure we try to have plans in place to make that as good as it can possibly be.

“For all these businesses that have lost an absolute fortune, hopefully it’s a chance to catch up and pull at least some money back.”