administration Archives - Page 6 of 7

Next rescue deal set to keep Joules open in Harrogate

Harrogate’s Joules shop is set to remain open after the retailer was rescued from administration by founder Tom Joule and high street brand Next.

The deal, announced today, will see 19 Joules stores closed with immediate effect — but Harrogate’s James Street shop is not among them.

More than 130 staff across the country have lost their jobs, but 1,450 have been retained. Next paid £34 million for the business, giving it a 74% share to Mr Joule’s 26%.

He said:

“After three years away from the operational side, I’m truly looking forward to inspiring teams with clear direction to excite and recapture the imagination of the customer again.

“Our customers have always trusted us to lead, not follow, with products that reflect their lifestyle. It’s important that we live up to the high standards they desire in design, quality and… the service they expect.

“I’m so pleased that we have been able to strike a deal that protects the future of the company for all its loyal customers [and] its employees.”

Next is expected to continue to sell from the Joules website, as well as adding the brand to its own site from 2024.

Marks and Spencer has already warned of a difficult time for retail as businesses face rising costs and falling consumer spending.

Companies ‘unlikely’ to receive pay-out from Bleikers Smoke House, say administrators

Administrators dealing with the collapse of a food company founded in the Harrogate district have said it is “unlikely” its 108 unsecured creditors will receive any of the money they are owed.

Bleikers Smoke House Ltd fell into administration in April, when it was also revealed that the company was being investigated for possible food fraud.

Now, administrator FRP Advisory Ltd has revealed a growth in the price of raw materials and difficulty in finding temporary staff at Christmas put “pressure” on the company. The latest report said:

“In late March 2022, the company’s biggest customer (approx 50% of sales) notified the company of concerns regarding the provenance of goods supplied and withdrew its products from sale in its stores, ceasing all orders.

“Despite an ongoing dialogue and a number of audits being undertaken by the customer and its agents, no resolution could be reached.

“A confidential settlement was subsequently reached with the customer on April 26, 2022, which ended the relationship.

“The sudden loss of this customer’s business, combined with the already weakened financial position meant the company was no longer viable.”

The latest update reveals a sale of the company, founded in 1993 at Glasshouses Mill, was attempted in April but a buyer was not found. After the company entered administration, there were two parties interested in buying it, but they pulled out when news of the Food Standards Agency’s investigation emerged.

However, a sale to Sixto Strategic Sourcing LLC for a total price of £300,000 has since been agreed, and could see production restarted from Bleikers’ most recent home at Leeming Bar.

As well as negotiating the sale, administrators reported they had secured the return of the company’s trademark and branding rights from a company owned by the children of Bleikers’ directors, Charles and Annabel Andrew.

The rights had been transferred within the last 12 months but were returned in order to facilitate a sale of the business, the report said.

Of the company’s 86 members of staff, just three have been retained on a self-employed basis to assist with specialist knowledge. A food hygiene specialist has been appointed to liaise with the environmental health office.

Administrators said the prospect of any of the company’s 108 outstanding creditors receiving any payment is “unlikely”.

Meanwhile, the Food Standards Agency (FSA) said it continues to investigate Bleikers Smoke House over allegations of food fraud.

Food fraud investigation into Bleiker’s Smokehouse

A business founded in the Harrogate district almost 30 years ago is being investigated for food fraud.

Bleiker’s Smokehouse, established in 1993 and previously based at Glasshouses Mill in Nidderdale, fell into administration at the end of April.

While administrators FRP Advisory seek a buyer for the business, the Food Standards Agency’s National Food Crime Unit (NFCU) has begun an investigation into allegations of food fraud.

Gavan Wafer, head of investigation at the NFCU, said:

“Our investigation into Bleikers Smokehouse Ltd is related to a number of alleged issues including concerns about their country of origin claims on some of their smoked salmon products. The NFCU has acted on intelligence it received and which has resulted in one arrest being made.

“It is vitally important that we ensure food is safe and what it says it is and that consumers and food businesses are confident in the authenticity of food they are buying. We would like to take the opportunity to thank North Yorkshire Police for assisting in the investigation and supporting this operation.”

The business was founded by the Bleiker family from Burton Leonard, who stepped down as directors in 2006. At the time it fell into administration, Charles Andrew of Kirby Malzeard was the sole director.

The smokehouse had moved in recent years to a business park at Leeming Bar, employing 86 members of staff and supplying supermarkets across the UK.

On April 28, 38 people were made redundant before the company entered administration the following day.

A spokesman for FRP Advisory today said there was no further update on its work following news of the investigation.

At the end of April, Martyn Pullin, partner at FRP and joint administrator, said:

“Bleiker’s was a family operation with a track record of supporting both major and independent retailers. The loss of a significant contract left the business in a difficult financial position. Regrettably, the insolvency has meant that the business is no longer able to continue trading and redundancies have been made.

“We are on site and will work closely with impacted staff to help them access the support they need in making applications to the Redundancy Payments Office.

“We are now focused on exploring options to sell the business and its assets and encourage any interested parties to come forward.”

Future of Harrogate district McColl’s in question

McColl’s has been placed into administration raising questions about the future of its stores in the Harrogate district.

The McColl’s Retail Group made the formal announcement today saying that reduced consumer spending and the impact of increased costs had impacted the businesses.

The Harrogate district’s stores are on Royal Parade, Otley Road and King Edward Drive in Harrogate and Bondgate in Ripon.

Morrisons had offered a deal to save the failing company, but in the past few minutes it’s been reported that the owners have appointed administrators.

The stores in Harrogate and Ripon could face closure.

The statement from McColl’s said:

“Whilst the constructive discussions with the company’s key wholesale supplier to find a solution with them to the company’s funding issues and create a stable platform going forward had made significant progress, the lenders made clear that they were not satisfied that such discussions would reach an outcome acceptable to them.

“In order to protect creditors, preserve the future of the business and to protect the interests of employees, the board was regrettably therefore left with no choice other than to place the company in administration.”

It also said the administrators intended to sell the business to a third-party purchaser “as soon as possible.”

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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.