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.

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

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.

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."

Moorfields Corporate Recovery wins National Corporate Recovery Firm of the Year Award

Moorfields Corporate Recovery are proud to announce they have been awarded Corporate Recovery Firm of the Year at the National Insolvency and Rescue Awards 2012.

Now in their 5^thyear, 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 selected amongst six finalists receiving particular praise for our innovative client reporting systems and focus on client satisfaction. Additionally the firm demonstrated an excellence in their specialist sectors having recently been appointed on cases ranging from Hein Gericke (UK) Ltd to the Rec 6 Portfolio.

“We are delighted to have been awarded Corporate Recovery Firm of the Year. This award recognises our continued growth, innovation and proven success in our field. Our growth strategy focuses on continuing to build a strong presence in the market place whilst challenging the traditional approach to insolvency” Simon Thomas, Partner

“We pride ourselves on delivering a service of the highest standard and providing and open transparent dialogue with our clients. We are delighted that this award has recognised the hard work and dedication of our staff” Phil Smith, Partner.

 

Buyers Sought for Leading Motorcycle Clothing and Accessory Retailer Hein Gericke (UK)

Buyers are being sought for one of the UK’s leading motorcycle clothing and accessory retailers, Hein Gericke (UK) Ltd, which has been placed into administration on Monday 30^thJuly 2012

The firm, which operates 49 shops in addition to a catalogue and an online shopping service, is widely recognised as a leading brand within the UK motorcycling community. With shops across England, Wales, Scotland and Northern Ireland,


Hein Gericke is an established retailer on the high street and has won many industry awards within the UK over the years.


Appointed administrator, Moorfields Corporate Recovery, is looking to sell the UK business as a going concern and is inviting interested parties to get in touch by Monday, August 6^th. The UK business is separate from the parent company, which operates shops across Europe, trading within the UK under a license agreement with the German based parent company.


Simon Thomas, joint administrator at Moorfields Corporate Recovery, said:“Hein Gericke (UK) Ltd is one of the leading suppliers of motorcycle accessories in the UK and has a well-established infrastructure in place that will allow a potential buyer to focus on generating sales. Whilst the ongoing economic pressures have affected sales in recent years I am confident the business model has a lot of potential with a dedicated customer base and staff who are obviously passionate about working for the company.”


Hein Gericke was a German biker who opened a motorcycle shop in Germany in the 1970s. Within a few years the business developed to become the largest motorcycle dealership in Germany. The next decade saw the business expand to include clothing and accessories for bikers. The company had an international presence by 1987 at the point Hein Gericke sold his business.


The Hein Gericke brand is now sold through a retail shop presence across Germany, Austria, Belgium, Netherlands, Italy, Luxemburg and the UK.


Moorfields also acted as administrators of HPJ Jewellers earlier this year.