8 Administration Alert
Administrators are currently examining the financial position of Manchester- based pub group, Clover Taverns, after it fell into administration this week. Clover’s parent brewery, the Spirit Pub Company, appointed administrators from Duff & Phelps to handle the process and carry out a full review of the financial situation of Clover, which operates ten pubs and venues
throughout the UK. Duff & Phelps partner, John Whitfield, said they were hoping to be able to find alternative tenants for the venues, which are largely in the north of England – including The Old Black Bull in Preston and the Shakespeare pub in Manchester city centre – but also include The Bell Inn pub in Birmingham and The Long Barn in Slough. “It has been well publicised in the press that consumers’ discretionary spending has reduced and, inevitably, the leisure sector has seen the impact of this,” Whitfield stated. “Under the current economic climate, the downturn in trade has exacerbated cashflow demands. With the support of the brewer, the ten public houses will continue to trade under the supervision of the administrators.” He added that they were confident that there would be a significant amount of interest in the venues.
The administrators of Rangers Football Club have announced they are accelerating the sale process of the financially stricken club, after they were unable to strike a cost- cutting agreement with the playing staff. Joint administrator, David Whitehouse, from Duff & Phelps said
that the cost cutting proposals would have involved major pay cuts for the players, which were concluded to be untenable. “In view of this, we are faced with a situation of making redundancies within the playing staff on such a scale that would materially erode the value of the playing squad,” he explained. “We are striving to strike a balance where cost- cutting measures can be implemented but do not destroy the fabric of the playing squad to the extent that it will inhibit the prospect of a sale.” It is hoped that the acceleration of the sale will produce a result that will prevent the redundancies having to take place, but Mr Whitehouse added that the club was still in a perilous situation. He said, “If, however, it becomes apparent that the sale process cannot be accelerated there will be no choice but to implement very severe cost cutting measures at the club.” The administrators took control of the club on February 14, and sought to make savings of more than £1 million per month.
Lincolnshire building firm, Bowman, has entered administration after amassing debts of around £2.6 million. The company announced its intention to appoint administrators last month, at which point it laid off most of its staff. Chris Stirland, from FRP Advisory LLP, and David Broadbent, from Evolution Business Recovery Services, were appointed as joint administrators on Friday last week. They have embarked on a process of winding down the business and finding potential buyers for any of its assets in order to return as much as possible to the company’s creditors. “The business is not in a position to trade and so we will begin the process of orderly
wind down,” Mr Stirland said. “[We] are now working to recover as much value as possible for creditors, who will receive notification of the administration during next week.” The administrators said that Bowman had had a turnover of between £10 million and £14 million. It was first founded in 1886 and much of its work involved the refurbishment of heritage properties. The Rutland and Stamford Mercury reported that Bowman’s chairman, Peter Loft, had brought in James Deacon as a new managing director last year, after admitting that the company was experiencing trading difficulties.
A new buyer is being sought for public policy conference organiser Neil Stewart Associates Limited, after it entered administration. Matt Bond and Andrew Stoneman of
financial advisory and investment banking company Duff & Phelps were appointed as the joint administrators on 5th March. Founded in 1994, Westminster-based Neil Stewart Associates produces public policy conferences and events, and works with public bodies, membership associations, think tanks, campaign groups, voluntary organisations and the commercial industry. One of the leaders in its niche, the firm manages more than 200 events each year, and has about 20 employees. Mr Stoneman commented on the situation, “The conference sector is one that has been particularly badly hit by the downturn in corporate discretionary spending in recent years, no more so than in the public sector.” He added, “The company has a prestigious client list and we are actively seeking a buyer for the business as a going concern. We are reviewing all options and for the time being it is business as usual whilst we conduct our search.” Neil Stewart Associates also provides a full press and public relations, communications consultancy and campaign planning service. Topics covered in past conferences include community budgeting, the environment, the future of apprenticeships, health and social enterprise. The administrators for Neil Stewart Associates can be contacted here.
Major County Durham dairy, Rock Farm, has called in administrators after suffering difficulties from bad debts and rising costs. The dairy suspended trading with
immediate effect when administrators from PwC were appointed, according to the local Journal newspaper. The company has a turnover of £17 million from its business of processing and bottling milk and other dairy products for distribution across the North East of England. PwC’s Stephen Oldfield and Ian Green are now looking to find a potential buyer or investor interested in establishing a ‘tolling’ arrangement, which would allow them to use the Rock Farm facilities for a fee payable to the administrator. “Trading has suffered in recent months and the administration is clearly disappointing news for all of the stakeholders, and employees in particular,” Mr Oldfield said. “However, we are looking to secure a rapid tolling agreement for Rock Farm Dairy. We are very keen to speak to anyone who might have an interest in such an arrangement.”
BUSINESS SALE REPORT - THE UK’S LEADING SOURCE OF INFORMATION ON COMPANIES FOR SALE
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