ICSM Business Membership Group: fighting late and non-payment – News in Brief: Typhoo Tea in a stew; bike firm goes bust; manufacturer owed £4.3m; wedding venue liquidated owing millions leaving brides in the lurch
By Harry Mottram: In the week that USA airline entered Chapter 11 protection – or as the Americans call it the car wash – the cold winds of economics and historic debt continue to have their damaging effect. Talking of debt Thames Water look like they may stagger on a little longer before the inevitable collapse and re-nationalisation. They have taken a £3bn bail-out loan to buy time – but there seems zero chance the utility will not end up back in public hands and the taxpayer will pick up the bill.
Tea time
Ty-Phoo Tea – the brand that used to be advertised on TV using a couple of chimpanzees – has been bought out of administration by Supreme from Manchester who make vapes amongst other products. Typhoo fell into administration after its pre-tax losses rose from £9.6m to £38m reports the BBC. Its sales fell from £33.7m to £25.3m, according to its latest results which covered the year to the end of September 2023.
The Bristol based firm has about 30 staff in sales and marketing having outsourced much of its operation leaving it with few assets but huge debts. Supreme bought the tea company for £10 which looks a bargain as Ty-Phoo is a well-known brand in the UK and with vaping under pressure from the health authorities spreading Supreme’s portfolio looks a sensible move.
Apart from historic debts Ty-Phoo had a mass trespass problem at their Moreton factory which screwed up the sale of the site due to the massive damage caused. Add to that the alleged ‘siphoning off’ of profits by the owners, and a sex abuse scandal amongst its tea picking workers it’s surprising it has lasted so long since it hasn’t made a profit for several years.
On your bike
i-ride in Brighton has gone bust with the lost of 40 jobs at the bicycle distribution company the day after Sir Bradley Wiggins was pictured riding one of their bikes in a charity ride. The news of the Olympic cyclist will raise eye-brows in the cycling world since he is also a bankrupt owing more than one million pounds. i-ride It was owned by the Martlet Group and had nearly collapsed a year ago and it is thought the collapse this time was caused by a last minute deal to fund the firm but the deal was pulled causing the bank to call in their loans.
ICSM understands from reports in the cycling industry press that the staff had not been paid in September or October. The same sources said the bad Brexit business deal and supply chain issues were other factors along with historic debt.
Manufacturer owed £4.3m
On the face of it, Lincolnshire manufacturer Electric Future Group has been saved after it was bought out of administration last month. They appointed Gareth Harris and Deviesh Raikundalia of RSM UK Restructuring Advisory LLP as joint administrators in the summer who have negotiated a deal with a new outfit called GRP Alliance securing the business and 100 jobs. The manufacturer had stopped work for a while but is now back up and working although there is no news on the £4.3m of reported debts.
Inside Media reported the company awa formed in Coningsby in Lincolnshire 12 years ago and manufactures composite parts for the rail, aerospace, automotive, construction and leisure sectors.
Weddings cancelled
On November 1st, Stapleford Park Hotel in Leicestershire collapsed sacking all 90 workers and cancelling all bookings and reservations. Leonard Curtis was appointed as liquidator of Stapleford Park Limited at the luxury wedding venue and Grade-I listed property, near Melton Mowbray. Alex Cadwallader, of Leonard Curtis, who has been appointed as joint liquidator along with Neil Bennett, said: "Our priority was to ensure the most orderly wind-down of trading possible. Significant efforts were made to communicate with and relocate the guests that were staying at the hotel, which was at approximately 50% occupancy. Leonard Curtis attended the site and worked closely with front of house staff to make this possible, and the wider group also met some essential costs to limit the impact on guests and future bookings. However, we fully appreciate that some guests will have been adversely impacted."
Creditors have been advised to email StaplefordPark@leonardcurtis.co.uk. It is not known the level of debts and liabilities, but it is expected several million pounds are owed.
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