Leading restructuring and insolvency experts Moorfields Corporate Recovery appointed Administrators over Blockbuster

Simon Thomas and Nick O’Reilly of leading restructuring and insolvency firm, Moorfields Corporate Recovery LLP, have today [11 November 2013] been appointed joint administrators of TS Operations Limited t/a Blockbuster.

Blockbuster operates one of the UK’s largest chains of film and game rental stores, with 264 stores and approximately 2000 employees. The company also offers a retail aspect to their business and an online presence at www.blockbuster.co.uk. The Blockbuster head office is in Uxbridge, and they had a regional clerical office in Newcastle, which was closed just prior to the Administration.

Gordon Brothers Europe acquired the business and assets of Blockbuster Entertainment Ltd and Blockbuster GB Ltd in March 2013.  Since then the company has striven to turnaround the historically loss-making company by restructuring the business, investing significantly in strategic marketing activities and negotiating with the landlords of its retail outlets. The company also tried to develop a new digital platform but was unable to broker a licensing deal in time. Regrettably, the months since the acquisition have also coincided with a period of poor trading performance across both rental and retail sales.

Whist the company is in administration, every effort will be made to ensure retail trade continues as normal.  We encourage customers to visit stores and continue to rent and buy as usual.

Commenting on today’s announcement, Simon Thomas, Joint Administrator said “This is obviously a difficult and upsetting time for everyone involved at Blockbuster, in particular employees who have endured a stressful period since January this year. We appreciate that staff and customers will want a speedy resolution, however, we must ask people to be patient over the coming weeks.

We are pleased to say that there are parties who are interested in parts of the business. Our focus will be to secure a future for as much of the business as possible as well as trying to save jobs before Christmas.

“We remain committed to being open and transparent during the intervening weeks, and will ensure that all stakeholders, in particular employees, are kept regularly updated about developments.

For media enquiries, please contact:

Katie Smith
Tel: +44 (0) 20 7186 1143
Email: ksmith@moorfieldscr.com

About Moorfields

Moorfields Corporate Recovery LLP is one of the UK's leading independent firms of Corporate Advisory, Restructuring and Insolvency Services. Our highly skilled teams include restructuring professionals and licensed insolvency practitioners who provide leadership, experience and high quality advice to companies and their stakeholders in financially distressed situations. Moorfields Corporate Recovery is proud to have been awarded Corporate Recovery Firm of the year at the Insolvency and Rescue Awards 2012.

Paul Zalkin, Head of property Solutions in this month’s edition of R3 magazine covering Maximising Recovery in Real Estate.

 

Moorfields Corporate Recovery shortlisted again for National Corporate Recovery Firm of the Year

Moorfields Corporate Recovery LLP are delighted to have been shortlisted for the “Corporate Recovery Firm of the Year” award in the prestigious Credit Today Insolvency and Rescue awards.

Now in their 6^th year, the Insolvency and Rescue awards are recognised as a mark of distinction amongst professionals, celebrating professional excellence in a challenging sector.

The award, open to firms with up to 10 licensed appointment taking IP’s, recognises significant growth, depth of experience, excellence in chosen sectors and focus on client satisfaction.

Moorfields was successfully awarded Corporate Recovery Firm of the year at last year’s awards after demonstrating an excellence in their specialist sectors and strong focus on client satisfaction.

Phil Smith, Partner “We are delighted to have been shortlisted for the Corporate Recovery Firm of the Year award, after winning last year’s award we believe we hold a strong position in the market and always ensure we differentiate our service offering to that of our peers.”

Simon Thomas, Partner “I hope that Moorfields will successfully retain their title this year, we are focused on client satisfaction and have continued to improve our specialist service sectors especially our property offering.” 

Moorfields hope to go on to claim victory again this year at the awards ceremony in October.

Moorfields appointed Administrators over portfolio of 50 assets in Scotland

Simon Thomas and Shelley Bullman of leading insolvency and restructuring firm Moorfields Corporate Recovery LLP have been appointed administrators over St Vincent St (491) Ltd (SVS) on 14^th February 2013.

The Scottish portfolio with an estimated guide price of around £15m consists of 56% retail, 30% commercial and 14% residential, with much of the portfolio consisting of prime retail outlets in Glasgow.

The company is one of the last major trading companies of The Coakley Group formally owned by property tycoon Thomas Coakley. The tycoon was once estimated to be worth £70 million but was made bankrupt earlier this year.

The portfolio will continue to run as normal while the administrators carry out a strategic review.

For further details please contact Moorfields Corporate Recovery LLP on 0207 186 1144 .

For media enquiries, please contact:

Katie Smith
Tel: +44 (0) 20 7186 1143
Email: ksmith@moorfieldscr.com

Warning signs your business may be in trouble

The collapse of high street chains such as Comet, HMV and Blockbuster have served to demonstrate that even established brands are not secure within the current financial climate. A number of businesses, regardless of size, may be assessing their current position as they try to figure out whether or not they need to start making contingency plans for the near future. Falling sales Falling sales are a definite sign that your business needs to consider what direction it is heading in. A warning sign that sales are about to drop is if people have stopped talking about your company – or if what they are saying is negative. If you are not getting any new business, or if profits are steadily declining, take this as an advanced warning that your business is potentially in trouble. Vital signs When was the last time you checked your vital signs monitor? Some of the key vital signs for a business include turnover, average order value, productivity rates, employee accuracy, costs, returns and margins. Rapid fluctuations among any of these vital components of your business could indicate that you need to make changes. Fading Morale When so much focus is concentrated on the inner workings of the business itself, and on the customers, it is easy to forget about your staff. However, employees have a significant impact on the success of the business, since the goods and services offered by the business stem from their collective efforts. It is vitally important that you take steps to consider the needs of your staff and whether or not they are sufficiently motivated. This could potentially have a bearing on how effectively your business is able to deal with financial challenges. A business insolvency specialist can assist business leaders and financial directors to deliver pro-active solutions for their business. Enlisting the help of such a service could be an intelligent financial decision in the current climate.

If you would like to have a free no obligation chat with one of our advisers please call us on 0207 186 1143 or visit our website.

What are the options for a struggling business?

When a company finds itself in serious financial difficulty, they have serious questions that they need to face up to. The most sensible option regarding what to do next may be to call in specialist insolvency practitioners to confront the challenges ahead. However, for many companies there is confusion surrounding their options. What will happen to the company assets? Which option is the most sensible one for my business? How much control will I still have? We have looked at a few of the most common options that a struggling business can pursue: Administration Administration is a process that protects a business from creditors whilst the process of restructuring takes place. The process can involve a reduction of overheads, re-financing or key changes to the management structure. Liquidation Liquidation becomes the most likely option if the company is unable to continue running and, as a result, administration is not possible. The central objective of liquidation is to ensure the release of as many assets as possible to pay off creditors. CVA Alternatively, creditors may agree to the installation of a Company Voluntary Arrangement (CVA) if they are convinced that this will achieve a better long-term result than liquidation. A CVA is a legally binding agreement that allows a company to freeze any unsecured debts and repay them over a specified period of time. Compulsory Liquidation Compulsory liquidation can only happen when a court order is issued to wind up a company completely. It can be one of the most complex options for a company which is in trouble due to the potentially lengthy nature of the process. Once the court has appointed a local Official Receiver then a corporate insolvency service can become involved. Corporate insolvency specialists A corporate insolvency specialist can assist business leaders, financial directors and stakeholders to deliver pro-active solutions for their business. They can also offer insightful advice regarding how to proceed in the unstable economic climate of 2013.

If you would like to have a free no obligation chat with one of our advisers please call us on 0207 186 1143 or visit our website.

Bank of England expect inflation to remain above target for 2 more years

Bank of England (BoE) policy-maker David Miles has argued that the BoE may need to contemplate boosting its programme of quantitative easing by a further £175 billion in an effort to bolster the UK’s sluggish economy.

This comes after the bank’s governor Sir Mervyn King suggested that inflation could sit above its 2% target for a further two years.

Sir Mervyn joined the call for the bank to continue its bond-buying programme this past Wednesday (21^st February), after predicting that inflation could reach at least 3% this summer.

Miles also echoed the idea that inflation “may go a bit higher” in the near term, as economic growth continues to be protracted and productivity continues to fall below trend.

Unstable times head for the economy

Arguing that the UK has not been through “a normal recession”, Sir Mervyn argued that the road to recovery won’t be “normal” either.

"Growth is likely to be weak in the near term but further out a continued easing in domestic credit conditions, supported by the Bank's asset purchase programme and the Funding for Lending Scheme, together with the stronger global backdrop, underpin a slow but steady recovery in output," stated the Governor.

The BoE has predicted that the economy is likely to lift by a figure of 1% in 2013, potentially rising more significantly by 2015.

Joshua Raymond, chief market strategist at City Index, argued that an uncertain economic climate means that the BoE has to weigh a number of factors when outlining a plan for the reversal of the UK’s economic fortunes.

"The Bank remains between a rock and a hard place in trying to strike a balance between the rising pressures of inflation and supporting the economic recovery," he said.

Insolvency practitioners

An insolvency practitioner can assist business leaders in identifying and implementing solutions in terms of finance, recovery and risk management. These companies specialise in providing corporate recovery advice to the numerous financial problems that can arise in the current financial climate.

If you would like to have a free no obligation chat with one of our advisers please call us on 0207 186 1143 or visit our website.

Income growth stutters in the face of rising inflation

A new report on consumer spending power in 2013 has indicated that income growth remains weak as incomes struggle to keep pace with rising inflation levels. The Lloyds TSB Spending Power Report has revealed that consumers were no better off for December 2012 than during the same period in 2011. The rising cost of essential items as well as the effects of rising inflations levels has countered a small growth in income of 2.9%. Patrick Foley, chief economist at Lloyds TSB, commented on the significance of the report: “The latest Spending Power Report shows consumers remain under some pressure. Essential spending growth has clearly been affected by the snow in January, but the picture of weak discretionary spending power remains in place at the start of 2013." “Looking ahead, inflation is likely to remain high and is expected to pick up in the first half of the year, so what happens to income growth will dictate the extent of the squeeze on households.” Christmas costs begin to add up The research also suggests that almost a third of people who actually compiled a budget for Christmas spent more than they originally intended to. This could mean that the fall in spending power at the start of this year could be exacerbated by Christmas purchases that consumers are still paying for. Retailers are likely to feel the effects of this latest squeeze on household finances, with consumers increasingly likely to focus their finances on essential purchases. Insolvency specialists As a result, high street stores that are already struggling may need to call in a specialist business restructuring advisor to help them deal with the financial challenges ahead. A corporate insolvency specialist can assist business leaders, financial directors and stakeholders to deliver sustainable solutions for their business. A number of businesses may find themselves in a financially distressed situation in 2013. Seeking advice at a sufficiently early stage make a crucial difference in terms of how your company deals with the situation.

If you would like to have a free no obligation chat with one of our advisers please call us on 0207 186 1144 or visit out website.

Manufacturing sector provides timely boost to UK economy

A strong finish to the year within the manufacturing sector has raised hopes that the industry could be poised to make a sustained and positive contribution to the UK economy.

A relatively disappointing 2012 for the sector was rescued by a successful final couple of months, during which demand for export to countries outside of the EU increased.
The indexes for production (1.1%) and manufacturing (1.6%) both increased between November and December 2012, according to figures from the Office for National Statistics (ONS).

The manufacturing boost was due to demand rising in a number of areas, including the manufacture of machinery (8%) and chemicals/chemical products (5.6%).

EU links falter

The industry was also helped by increased demand from a number of new sources. Countries within the European Union (EU) were the primary export destinations for the UK manufacturing sector up until the latter part of last year.

However, the recent financial uncertainty that has taken hold within the eurozone has caused previously strong trade links to stutter. Manufacturing exports to other EU countries fell by 4.8% in the last 2 months of 2012.

As a result, a number of manufacturing companies were left with little choice but to seek new trade links. Manufacturing exports to non-EU countries increased by 11.7% during the same period, which was a welcome boost to UK manufacturing companies who may have been wondering what the future held for them.

Numerous government figures have made frequent reference to the importance of a strong manufacturing sector if the UK economy is to recover sufficiently in the near future. These ONS figures suggest that things may be moving in the right direction.

Insolvency practitioners

Businesses which are not performing as successfully as they may wish could potentially benefit from seeking advice sooner rather than later.

A business insolvency specialist can assist business leaders and financial directors to deliver pro-active solutions for their business, as well as advising them on how to adapt to the ever-changing economic landscape in 2013.

If you would like to have a free no obligation chat with one of our advisers please call us on 0207 186 1143 or visit our website.

Downgraded growth forecast points to fragile 2013

The Bank of England (BoE) has today delivered another frustrating blow to the hopes of a UK economic recovery, as the growth forecast was marked down.

Mervyn King warned that growth in the UK economy was unlikely to gain any significant momentum until 2015. It is a worrying statement that hints at the fragile future that a number of struggling UK businesses may face for the rest of 2013.

It also halts any specific ideas that high street retailers may have had about a recovery in the fortunes of the UK economy. It may now seem like a very long way until 2014 for a number of struggling outfits.

Clothing chain Republic was today revealed as the latest victims of the recent downturn as they called in the administrators after a disastrously poor 2012.

150 members of staff at the company’s head office have already been made redundant and the nationally recognised brand is the latest in a long line of big names to feel the full impact of the economic downturn.

It is difficult to say with any real certainty how many more retailers will be forced to close their doors during 2013. The answer to that question probably depends on how effectively they are able to cut their cloth during these unstable economic times.

Contacting an insolvency specialist

It can be difficult to assess how much financial trouble your company may be in as many directors and company managers are unable to look too far ahead into their financial future. Targets are being hastily re-structured from one quarter to the next for a number of companies.

A restructuring and insolvency advice service can assist business leaders, financial directors and stakeholders to deliver pro-active solutions for their business. They can also offer insightful advice regarding how to proceed in the unstable economic climate of 2013.

If you would like to have a free no obligation chat with one of our advisers please call us on 0207 186 1143 or visit our website.

Insolvency index report brings mixed news for UK businesses

The latest business insolvency index produced by Experian has highlighted some surprising results in terms of the amount of company insolvencies recorded in the UK last year.

 

2012 saw a slight fall in the number of companies who were forced into insolvency compared to the previous year.

In regional terms, North West England, the West Midlands and Wales saw the biggest improvement in terms of the insolvency rate.

 

A numbers game

 

There wasn’t good news for everyone though. Perhaps the most interesting aspect of the report was the fact that there was a clear disparity between the insolvency cases recorded on behalf of larger companies compared to smaller operations.

 

Firms with between 51-100 employees enjoyed an improvement in the number of recorded insolvencies, with the figure falling from 2.22% in 2011 to 1.83% in 2012.

 

In contrast, the situation was quite different for companies with more than 500 employees. These companies actually saw an increase in the rate of insolvencies, with the figure rising from 1.46% in 2011 to 1.61% in 2012.

 

These figures certainly suggest that it is the larger companies who are continuing to feel the sharpest effects of the stuttering UK economy. It is our view, however that smaller companies are also suffering real difficulties as trading conditions continue to be difficult. Many business owners are simply 'closing the doors' some what distoring statistics.

 

HMV stand out as an obvious recent example of a major company that has considerably more than 500 employees and has been forced to accept the reality of the current financial climate.

 

Specialist advice

 

Businesses may have felt that the worst of the downturn was now behind them. However, these results suggest that a number of companies could simply be caught in the eye of a wider-reaching financial storm.

 

Underperforming businesses worried about their financial situation can benefit from seeking advice sooner rather than later.

 

A restructuring and insolvency specialist can assist business leaders, financial directors and stakeholders to deliver pro-active solutions for their business, as well as advice on how to adapt to the ever-changing economic landscape.

 

If you would like to have a free no obligation chat with one of our advisers please call us on 0207 186 1143 or visit our website.

Moorfields Corporate Recovery - leading provider of Corporate Restructuring & Insolvency Services - Insolvency Practitioners providing advice on Company Administration, Business Recovery, Pre-Pack Administration, Company Voluntary Arrangement, Liquidation, Receiverships.

Protecting your Business

The current economy is having an impact on nearly every business. Many businesses are experiencing issues and external conditions which are now out of their control, leaving them concerned about their responsibilities and potential liabilities.

It’s crucial that if you are facing financial pressures they are not ignored as reacting early can help protect both your individual and business’ best interests.

Taking the correct professional advice and being aware of your options gives your business the best chance of survival.

Click here to read more

 

Moorfields appointed Administrators over Teknoflex Ltd the UKs largest supplier of flexible and flex-rigid multilayer circuits

Buyers are being sought for the UK’s largest manufacturer and supplier of flexible and flex-rigid multilayer circuits Teknoflex Ltd, which was placed into administration on Monday 14^th January 2013.

The business, which operates in Sussex specialises in the design, manufacturing and assembling of flexible circuits and flex-rigid multi-layer inter connection systems to both the UK and overseas market with a particular focus on high technology, niche products for the defence sector. The business has traded for over 50 years with over 100 employees and has established key overseas trade in the US, France and Germany.

Simon Thomas and Shelley Bullman of leading insolvency and rescue firm Moorfields
Corporate Recovery have been appointed administrators and are looking the sell the business as a going concern.

Simon Thomas, joint administrator at Moorfields Corporate Recovery, said:“Teknoflex is a leading UK manufacturer and supplier with a strong reputation for providing high technology, niche products to a specialised market. With over 50 years experience and high quality in-house design, assembly and test facilities the firm has a solid infrastructure in place that I am confident has potential both in the UK and overseas.”

Shelley Bullman, joint administrator at Moorfields Corporate Recovery, said: “We have seen a number of manufacturing businesses suffer in 2012 following difficulties in the eurozone. As a result the market suffered a period of decline. Unexpectedly the Markit/CIPS UK Manufacturing PMI index showed an increase in December 2012 leaving the industry optimistic about 2013.”

 

Moorfields Property Solutions Team successfully secure sale of properties totalling over £80 Million in December

The property sector has been one of the worst hit sectors in this double dip recession, but with the spotlight now firmly on London and the UK due to the Summer Games it looks like it is slowly making a recovery.

Over the last 6 months Moorfields Property Solutions team have acted on behalf of a number of lenders in the property sector, collectively owed some £800m, across a variety of properties including residential, commercial, licensed trade and development sites.

Last month the property solutions team successfully realised properties totalling over £80m with over 60% of the properties falling under the commercial or licensed trade sector. The team tackled a number of issues prior to sale including planning irregularities, rent arrears, undocumented tenancies, guarantee issues, building regulations and squatters.

Simon Thomas, Fixed Charge Receiver and Administrator at Moorfields Corporate Recovery said“Moorfields saw a number of portfolios suffer in 2012, from properties valued at £265m to small residential properties. With our success in Q4 2012 we are confident that the market will remain steady but challenging in the year ahead”

 

Lavish fraudsters Kallakis and Williams found guilty of defrauding Banks out of £750m

Moorfields Corporate Recovery assist Serious Fraud Office with conviction of two Mayfair property businessmen guilty of defrauding banks out of millions of pounds.

Achilleas Kallakis and Alexander Williams appeared at Southwark Crown Court today to receive sentencing for orchestrating a five year period of fraud to secure loans from Allied Irish Bank (“AIB”)totalling over £750m.

The pair were found guilty of using forged or false documents to obtain substantial loans to finance the purchase of a commercial property portfolio. Both are due to receive sentencing later today.

Simon Thomas and Shelley Bullman liquidators of leading insolvency and rescue firm Moorfields Corporate Recovery assisted the Serious Fraud Office (SFO) in uncovering the pairs wrongful trading activities when appointed liquidators over Oregon Finance Corporation and seven other companies used by Kallakis and Williams.

The liquidators conducted a series of investigations over the assets and liabilities of Oregon Finance Corporation the results of which were then provided to the SFO.

Kallakis and Williams is another example of Moorfields investigations team tackling fraudulent trading. In 2012, Moorfields were instrumental in obtaining a custodial sentence for two Slovakian businessmen who refused to handover £4m belonging to a UK company over which Moorfields were appointed liquidator.

Simon Thomas, joint liquidator at Moorfields Corporate Recovery, said: “Fraud is estimated to cost the UK economy billions, but the true burden of such a crime can never by known until each instance is made public as shown in the case of Kallakis and Williams. The pairs successful conviction demonstrates our ability as liquidators to uncover fraudulent trading despite a company being in liquidation. Moorfields hope to continue working with the SFO to try and prevent fraudulent trading."