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| | | | 15/10/2015 | Insider Media, Laurence Kilgannon - Pre-pack deal saves jobs at shoe retailer | | | | | Pre-pack deal saves jobs at Garage Shoes | | | | | Insider Media reports that Garage Shoes has been rescued out of administration in a pre-pack deal.
Limewood Retail, which trades as Garage Shoes, was set up to acquire the assets of Garage Shoes Ltd from an earlier administration in 2013 and had initially traded well.
But, according to a report by insolvency firm Gaines Robson, Garage Shoes was hit by a poor customer reaction to its spring and summer ranges earlier this year and operational problems with the internet side of the business.
Subsequent cash flow problems meant Limewood Retail was not able to meet VAT, PAYE and rates payments on time prompting HM Revenue & Customs to threaten a winding-up petition.
An agreement was reached with HMRC and most of the rates authorities, but Sheffield and Manchester city councils issued enforcement notices and warned that bailiffs would be seizing stock at stores in those cities.
Coupled with this, the company was served with a termination notice in relation to one of its best performing sites, at The White Rose Centre in Leeds, as the landlord intended to develop the shopping destination.
A notice of intention to appoint administrators was filed on 29 July, protecting the business from enforcement action by the bailiffs, and after a marketing drive failed to secure a solvent deal, a £27,500 pre-pack sale was agreed with Limewood Fashion Ltd, a company owned by Malcolm Wayne, the father of Limewood Retail's director Simon Wayne.
The administration will, however, leave unsecured creditors with an estimated £1.8m shortfall. |
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