Bill Wyman’s Sticky Fingers restaurant is the latest casualty of Covid-19’s effect on hospitality (read ICSM’s latest list of pubs, restaurants, hotels and events management firms that have hit the rocks)
From take-aways to five star hotels, the hospitality industry has been hit like never before with the Government’s Covid-19 regulations leading to thousands of redundancies, company collapses and a legacy of debt.
The latest eaterie to close is owned by Rolling Stones bassist Bill Wyman in London’s Phillimore Gardens. Opened in 1993 Sticky Fingers was named after the Stones’ 1971 album which featured a close up of a jeans-clad male crotch. At the time Bill was dating an under-age Mandy Smith which created considerable controversy but in terms of publicity perhaps fitted into the rock and roll image of the establishment. Wyman has blamed the Covid lockdowns for the closure making the restaurant economically unviable as punters continue to stay at home with social distancing putting off diners.
Bill Wyman and Mandy Smith
Ian Carrotte of ICSM said there was real concern about the ending of the furlough scheme as more than 1.5 million people were still on the scheme. He said: “When it ends all the sectors hit by the lockdowns will see company collapses and even more problems from months of little or no trading. ICSM covers liquidations and the appointment of administrators as well as flagging up businesses that are not paying their bills and squeezing suppliers for credit.”
ICSM is a members organisation that keeps firms informed of companies that are in trouble with informed and immediate credit intelligence saving them millions every year.
These were some of the firms in the hospitality and travel sectors hit during May of this year:
Administrators Appointed
Henbury Social Club & Institute Limited IP17913R
Administrators Meetings Para 51
Baxter Hoare Travel Limited 00967736
Creditors’ Voluntary Liquidation Deemed in Consent Meetings
A Nineteen Pub Company Limited 11448516
Aqua Brasserie Blackheath Limited 08523348
Artemis Leisure Limited 06237606
Bluedaze Limited 07018189
Dancing Fish Events Limited 07813170
Goa Hip Hop Festival Limited 11969204
Gold Star Global Events Limited 11068693
Jolly Fine Malt House Limited 07957702
Kings Catering North East Limited 09543346
Maestra Events Limited 09826384
Mercury Events Limited 08003000
Mercury Events Retail Limited 12941703
M Junction Limited 10925819
SA Food Stores Limited 10976928
Scott and Babs Woodfired Food Limited 09568398
SC Holiday Solutions Limited 08732843
Swan Pier Company Limited 05901281
Terry’s Restaurant Limited 12219785
The Bird In Hand Bromley Limited 08731576
The Crescent Hotels Limited 08557483
The Field Kitchen (UK) Limited 07457911
The Plough Inn Holford Limited 11573738
The Unit Fitness UK Limited 09730476
The Victoria Inn Ashburton Limited 10755497
Vivid Hospitality Solutions Limited 08658860
Zugers Bromborough Limited 11638610
Liquidators Appointed
AK & B Catering Limited 10724470
Ashmount Hospitality Limited 10686865
Beanbag Coffee Limited 09127302
Busy Bee Events Limited 07162716
Brunch Box Limited 12077623
Café Avenue Limited 11677589
Cali Juices Limited 11798166
Cambridge Pub Group Limited 10148077
Catering Business Solutions Limited 11691543
Chamberlains Restaurant Limited 04026407
Escape Inside And Out Limited 09253513
Farmhouse Pizzas Org (UK) Limited 10338176
Franklin Bar Limited 06936382
Goa Hip Hop Festival Limited 11969204
Half Moon Bay (Leisure) Limited 05222630
HN Events Limited 12340048
INV Project Limited 10203012
Isha Weddings Event Limited 10620329
Joes Burgers Limited 10804704
J Honny’s Restaurants Limited 11835720
Kirkpatrick Restaurants Limited 05354148
Keystone Entertainment Limited 11012334
Leicester Square (London) Hotel Limited 10615716
Lucky Crab Limited 10627298
Mad Hatters Tea Room and Bakery Limited 08407246
Music & Events Limited 12154362
Megna Restaurant Limited 04779005
MJB Events Limited 09977529
Nash Inns Limited 04913376
Promac Leisure Limited 05089308
SC Holiday Solutions Limited 08732843
Sival Hotels Limited 02009036
Southampton Nuffield Theatre Trust (The) 01711502
Sparkford Events Management Limited 10904063
Simple Leisure Limited 07086194
Spicy Chef Limited 11596213
Starlink Euro-UK Limited 10294235
The Victoria Inn Ashburton Limited 10755497
True Italian Restaurants Limited 10926867
Toms Event Bars Limited 10440036
Top Event Limited 04380494
Top Choice Holidays Limited 04455228
Victory House (London) Hotel Limited 09162585
Wardour Restaurants Limited 11871804
Winebuyers Limited 09816569
Woodend Bar Limited 09515790
Members Voluntary Liquidations
International Airline Passengers association (EAME) Limited 02577549
Knowle Grange Leisure Limited 04594639
Mole and Chicken Inn LLP OC422418
RSA Hotels Limited 08100238
SOF-10 Starlight 13 Operations Limited 09300955
The Executive Club International Limited 01455887
Types of Insolvency
Administration
Administration applies to limited companies and partnerships and is intended to get the company out of trouble and trading again if possible. Administrators can be appointed to a company that is unable, or is likely to become unable, to pay its debts. They can be appointed by the courts (on application from a creditor, directors or partners), the holder of a qualifying floating charge over the assets of the business, or the company or its directors. An administrator's primary goal is to rescue the company as a going concern. If this isn't possible, the administrator will try to get a better result for the creditors than would be possible if the company was wound up. If neither of these is possible, the administrator will sell the company's property to make at least a partial payment to one or more secured or preferential creditors, such as employees or the bank.
Administrators Meetings Para 51
This statement by the administrator of his proposals must be accompanied by an invitation to an initial creditors' meeting (Sch B1, para 51(1)).
Bankruptcy
This can only apply to individuals (including sole traders and individual members of a partnership). Bankruptcy petitions may be presented to the court by the individual, by creditors who are owed £750 or more, or by the supervisor of an individual voluntary arrangement. A bankruptcy order is made by the court.
Company Voluntary Arrangement (CVA)
A company comes to an arrangement with its creditors to pay the debts in full or in part over time. A CVA begins with the company (or its adviser) drafting a formal proposal at a Creditors' Meeting to pay part or all of the debts. If the proposal is accepted by the creditors, the arrangement will become legally binding and the directors will retain control of the company.
Compulsory Liquidation
This is the winding up of a company or a partnership by a court order (a winding up order). A petition is normally presented to the court by a creditor stating that he or she is owed a sum of money by the company and that the company cannot pay.
The Official Receiver becomes liquidator when the order is made but an Insolvency Practitioner will be appointed to take over if the company has significant assets. The liquidator's role is to realise the company's assets, pay all the fees and charges arising from the liquidation, and pay the creditors as far as funds allow in a strict order of priority.
Compulsory Liquidators Appointed S 136
When a winding-up order has been made, the Official Receiver is initially appointed as liquidator (section 136, IA 1986). The company's creditors and contributories may appoint another individual, who must be a registered insolvency practitioner, to act as liquidator (section 139, IA 1986). More than one liquidator can be appointed to act jointly.
Creditors' Voluntary Liquidation
Here the shareholders pass a resolution to wind the company up without the need for a court order. A Creditors' Meeting is held to nominate the appointment of a liquidator and consider a statement of affairs. Creditors can appoint a committee to work with the liquidator, whose role is to realise the company's assets, pay all the fees and charges arising from the liquidation, and pay the creditors as far as funds allow in a strict order of priority.
Creditors' Voluntary Liquidation Deemed in Consent Meeting
Creditors are now 'deemed to have consented' to a decision or resolution if 10% of creditors (by value) have not objected to it. In other words, if objections are not received by the specified decision date, creditors are 'deemed to have consented' to the decision or resolution.
Individual Voluntary Arrangement (IVA)
An individual comes to an arrangement with creditors to pay his/her debts in full or in part over time as an alternative to bankruptcy. The arrangement is set up by a licensed Insolvency Practitioner who will put it to a meeting of creditors. If the proposal is accepted at the meeting, the agreement reached with the creditors will be legally binding. An Interim Order is sometimes issued by a court and will immediately protect the debtor from any legal action by creditors.
Petitions to Wind Up
A winding up petition is a legal notice put forward to the court by a creditor. The application, in effect, asks the court to liquidate the company as they believe the company is insolvent. Proceeds of the liquidation can be used to pay back creditors.
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ICSM CREDIT
For information on ICSM visit www.icsmcredit.com or call 0844 854 1850.
ICSM, The Exchange, Express Park, Bristol Road, Bridgwater, Somerset TA6 4RR. Tel: 0844 854 1850. www.icsmcredit.com. Ian.