No hope for D&D as a going concern
The administrator for D&D Wines International has given up trying to sell the company as a going concern.
D&D went into administration in April with the immediate loss of 12 jobs. A report filed at Companies House by administrator Christopher Ratten, of RSM Tenon, revealed that a further 12 people have since been laid off, leaving just three staff to assist in selling off stock and other assets.
Lanchester Wine Sales has entered into an agency agreement with RSM Tenon to help in the sales of D&D stock.
Ratten said “no purchaser could be found for the shares of the company” and a sale of stock and assets was now the preferred way to raise funds to pay off creditors.
Four offers were received for D&D as a going concern after it entered administration, two of which the administrator considered to be viable, but the bidders concerned later withdrew their offers.
Ratten added that the company’s trading position and financial circumstances meant a company voluntary agreement was “not considered viable or appropriate”.
The report showed D&D’s turnover took a big hit in the second half of 2011 when a major overseas supplier began to invoice direct to UK retailers, while continuing to pay D&D a commission.
Increased stock levels also contributed to cash flow pressure that meant the company became unable to pay its liabilities as they became due in the first quarter of this year.
A list of unsecured creditors shows total debts of just under £10.5 million.
Major creditors include Rioja firms Bodegas Muriel – owed £2.8 million – and Bodegas Eguia, staring at a potential loss of over £1.2 million.
French wine producer Advini is also owed more than £1.2 million, while La Gioiosa of Italy could lose £771,000.
These and other debts could be settled or reduced by retention of title claims held by creditors over stock.