ICSM Business News In Brief: Richard Branson’s space firm crashes; end of Middleton’s party; shock at Manchester Printers’ debts; haulier goes bust, and Planet Organic owed creditors £1.5m

By Harry Mottram: ICSM brings you the latest headline news from the business of insolvencies, administrations and firms in danger of going bust.

Virgin Orbit fails

A small fuel filter led to the demise of billionaire Richard Branson’s space company Virgin Orbit. During the short flight in January from Newquay Airport the filter came loose setting off a chain reaction leading to the space rocket being aborted and crashing into the sea.

At the time it was described as an anomaly in a failed PR attempt to make it seem a minor issue. Five months later and the entire Branson enterprise is dead. It’s assets including the its launch plane a Boeing 747 has been sold off in a fire sale raising around £29 million pounds in a desperate attempt to stay afloat. Branson claimed he lost £1.5 billion pounds in the last three years – blaming it on Covid – but his space rocket company leaves a trail of debts of more than one million pounds and a lot of companies massively out of pocket.

Ian Carrotte of ICSM said the fledgling space industry is a high risk sector for investors and suppliers. He said: “Last year saw a record number of private and publicly-owned planned rocket launches. A large number were either aborted long before ignition or failed to reach space – burning holes in the finances of those who have backed them or supplied parts and equipment. I would caution anyone from investing in the space industry as you need very deep pockets for when things go wrong.”

Middleton mess

The Party Pieces firm owned by the Princess of Wales Kate Windsor’s parents Carole and Michael Middleton has been bought out of administration by James Sinclair of Teddy Tastic bear Company fame. He acquired the failed firm in a pre-pack deal after it collapsed earlier this year with trading losses reported in 2021 of £286,000. Described by angry customers who vented their displeasure at the quality of the goods of Party Pieces as ‘complete tat’ and  ‘shoddy products’, as well as complaints about poor service and no refunds when goods were not delivered the firm was in a spiral of decline. Ian Carrotte of ICSM said doing the basics right is the key in running a successful business which he said appeared not to be the case in this company.

Printing debts

The printing industry’s trade publication Print Week has reported on another sorry chapter in the collapse of the Manchester Printing Group. Writing on Print Week’s website Jo Francis reported: “Former director Gavin Page owed Manchester Printers Ltd more than £300,000 via an employee loan account according to documents relating to the firm’s liquidation, which also detail a complex web of intercompany loans and debts.The statement of affairs filed by liquidators from KBL Advisory shows that Manchester Printers Ltd has a total estimated deficiency of £726,012. The firm was placed into creditors’ voluntary liquidation on 18 April. Parent Manchester Printers Group Ltd went the same way on 15 May. It has a total estimated deficiency of £578,466.”

Ian Carrotte said there are legitimate concerns about directors of firms who have a track record of failures in business. He pointed out that Francis had reported on Page’s past including being disqualified as a director at Encore Catalogue Group. He said: “ICSM now has an online service that lists the previous directorships of directors of companies. So if you as a supplier are contacted by a firm that has a new director in charge and you are not familiar with them then you can check out their past. Some directors have a string of company failures behind them but unless you are aware of their history you could be trading with a firm likely to pay their invoices on time or not at all.”

Planet of failure

The so-called ethically sustainable supermarket chain Planet Organic went into administration in April owing £12.5 million pounds to suppliers and lenders. Bioren has acquired part of the chain taking on 10 stores leaving the rest to close along with 100 axed staff. Several supermarkets had expressed an interest in buying the brand but retailer Bioren Limited decided there is still a future in the ethical market despite the cost of living crisis.

Phoenix flop

Writing in Motor Transport Chris Tindall has reported on the demise of Phoenix Worldwide Logistics or Warwickshire who went bust in March. The haulier had 29 HGVs and 29 trailers plus a massive amount of warehousing. Covid had seen the business increase as online spending by the public increased leading to more deliveries but once the pandemic ended and the public have been hit by the cost-of-living crisis business tailed off.

Mounting debts with creditors and a hefty tax bill with HMRC led the directors to decide to call in SFP Insolvency practitioners with whom they decided to wind down and close the business.

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About ICSM Credit

ICSM Credit has more than four decades of experience as a credit intelligence group whose members gain inside information about firms in trouble allowing them to avoid bad debts and rogue traders. To join costs less than a tank of fuel - while at the moment there's a special free temporary membership offer during the Covid-19 crisis which gives access to free legal letters. ICSM also has an effective debt collecting service which has a global reach - ask for details from Paul.

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For details for the work of the journalist Harry Mottram visit www.harrymottram.co.uk