Flooring business assets sold following administration

Flooring business A. & S. Carpets & Vinyls suffered cashflow difficulties following a change of ownership ahead of entering administration.

Alan Fallows, of Xeinadin Corporate Recovery Limited, and Chris Brindle, of Campbell Crossley & Davis, were appointed as joint administrators of A. & S. Carpets & Vinyls Limited on 6 February 2024.

Detailed in newly filed documents on Companies House, the business underwent a restructure in July last year when the company was sold to current director Neil Palmer. A former director sold the business after two key employees, both of 20 years’ service, suffered from illness and subsequently died, with another unable to work due to long Covid.

Following the sale, the company soon began to enter cashflow difficulties and received pressure from various creditors due to non-payment of invoices.

In December 2023, the company sold a motor vehicle which was subject to a fixed charge and failed to account for the balance to the fixed chargeholder. They took action to protect their position and filed for administration under the powers of their charge.

The company ceased to trade upon appointment, with administrators commencing a marketing process for the assets.

A total of £55,000 was paid for the business assets and IP from unconnected company LCL Flooring. It proved to be the highest bid from four tabled offers, with the sale including stock – valuing £42,000, plant and machinery, motor vehicles and office furniture equipment.

As for creditors, directors are owed £60,000 as a secured creditor, while preferential creditor, the HMRC, is owed over £9,000. Unsecured creditors are owed a total sum of £183,000. Administrators said it is expected that the secured creditor could receive a dividend of 18.8p/£ but no other distribution to any other claims is expected.

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