Colourhouse Ltd, a Deptford based printer entered administration in November last year, with a book debt of £1.9m, and the outlook for distributions is exceptionally bleak for creditors. This case may be a stark reminder for any company that operates on a credit basis.
The £5.8m debt was split between employees (£1m), trade creditors (£3.3m) and Bibby Financial Services under an invoice discounting agreement (£1.5m). As with all insolvency cases, debts were to be recovered from the sale of assets, problems arose when administrators found that almost all assets were subject to rental or hire purchase agreements and that most of these were in arrears.
Bibby Financial Services is one of the few creditors expecting to see any distribution but will still see over £100,000 worth of shortfall. Prior to the appointment of administrators, The Colourhouse had ceased trading having insufficient capital to pay its suppliers for the release of goods and had already dismissed 85 staff earlier in 2013.
This case should be a stark reminder to any creditor that it is important to keep an eye on your clients. At McAlister & Co we are proud to offer our Creditor Support Service to any business and have many ways in which we can help.
Through our free weekly newsletter any creditor is entitled to detailed information regarding county court judgements and local bankruptcies, many of which may be their existing or potential clients. Upon request, we also offer a free detailed report from Companies House which details every piece of information held regarding any company you wish to find out more about, such as previous accounts and full company details. If either of our services is of interest then by all means get in touch with us: email@example.com