The liquidator of Warminster-based National Facilities Management (National FM) has shed more light on what led to the distributor’s demise in October 2020.
RSM Restructuring’s Diana Frangou, who was appointed as liquidator in November 2020, has issued a progress report, publicly available from Companies House, on winding down the business in the subsequent 12 months.
She stated that National FM’s ledger showed: “£654,041 due to the company, however a significant portion of this amount related to a debt owned by Byron Hamburgers Ltd who had entered administration in July 2020. The director’s estimate of the realisable value of the ledger totalled £218,720.”
Frangou reported that in the short period from the issue of deemed consent notice to creditors and the date of liquidation, £85,193 was paid by various debtors into the company’s bank account.
She further revealed: “During the liquidation to date, the joint liquidators have spent time liaising with the company’s debtors, reviewing the company’s books and record, in order to reconcile the ledger and understand the works completed, and reviewing substantive evidence provided by debtors who have raised disputes.
“Given the nature of the works completed, a number of debtors claimed that the works undertaken by the company were of a poor standard and that they had incurred additional costs to rectify the works. As such, these debtors were unwilling to make payment to the liquidation and these amounts have been written off.”
The distributor had run up £5.1m of debt before it closed its doors, according to the company’s statement of affairs published on Companies House. However, over £2m of the company’s liabilities were shouldered by MD Geoff Mitchell himself.
As well as owing over £1.7m to Allied Irish Bank, National FM’s trade creditors were headed by kitchen design house, Sprint Group, with other major names towards the top of the list including Defluo, Winterhalter, Unox, Chapman Ventilation, Concept Fabrications, Middleby UK and Ingot Ventilation Services.
Currently, unsecured trade creditors have received no reimbursement from the liquidation process.
Frangou concluded: “As the balance of book debts has been written off as irrecoverable, there are no remaining assets to be realised. The joint liquidators will finalise their adjudication of unsecured creditor claims in the coming weeks, with a notice of intended dividend expected to be issued in January 2022.”
The Wiltshire-based business was incorporated 2003 first as Wessex Catering Maintenance by Anthony Morgan, subsequently becoming Wessex Facilities Management in 2006. It then changed its name again to National Facilities Management in 2008 around the same time Mitchell was appointed to his MD role.