Display cabinet retailer sold in pre-pack deal

Online display cabinet furniture retailer Display Cabinets UK Ltd was sold in a pre-pack deal after entering administration.

Steven Currie, of Currie Young Limited, was appointed as administrator of Display Cabinets UK Ltd on 18 March 2024.

Detailed in a report, ahead of being placed into administration, the company suffered due to its director experiencing mental health issues that led to a “path of self-destruction” that ultimately resulted in a prison sentence. The director suffered personal loss and has since “turned his life around” and is now “focussed on making a success of the business moving forward”.

Following the appointment of administrators, the business and assets were sold to newco D C Midlands Limited, a connected party, for a sum of £60,000 on 20 March 2024.

The initial sum of £4,000 was paid on completion, with a further 10 instalments of £4,800 due by February 2025.

The pre-pack sale saved six jobs and the continuity of trade for its customers. Administrators said the deal “significantly reduces both preferential and unsecured creditor claims in the matter”.

As for creditors, the HMRC is owed £400,000, while unsecured creditor claims totalled £85,000. It is expected that creditors will suffer a shortfall of £422,000.

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