Interesting business situation locally...

[akirk]

Popular Cirencester restaurant goes into administration
http://www.wiltsglosstandard.co.uk/news/16213953.P...

The cast:
- Made By Bob - the restaurant
- The Corn Hall - the market place building within which is an arcade of shops - one of which is rented to Made By Bob
- James ‘Bob’ Parkinson - chef whose name is behind the brand
- Mark Booth - director of Made By Bob (with James Parkinson) - also director (& 75%+ owner) of Corn Hall Cirencester Ltd (landlord) - also sole director of MBB Brasserie LTD (formed in Feb 2018 to manage Made By Bob)

So, Made By Bob has debts of c. £340K and HMRC are threatening to issue a winding up petition

newspaper said:

By January of this year concerns were being raised that the company was insolvent.

In February, as Made By Bob built up rent arrears of over a year, HM Revenues & Customs advised that they intended to issue a winding up petition against the company unless all tax arrears were paid.

Directors are understood to have worked with those to whom they owed money and Corn Hall Cirencester Ltd, the company which Made By Bob lease the premises from, supported a proposal by Mr Booth to instruct a third party manager of the premises to help resolve the situation.

directors worked with Corn Hall Cirencester - which is 75%+ owned by one director
supported a proposal made by Mr Booth to instruct a third party manager - MBB Brasserie Ltd - director = Mr Booth (3rd party?)

newspaper said:

Mr Booth is also a company director for Corn Hall Cirencester Ltd owning over 75 per cent of the company.

Additionally the company which was recommended to manage the restaurant, MBB Brasserie LTD was formed in February 2018, with a sole director – Mark Booth.

Made by Bob is understood to be in the process of being sold to MBB Brasserie Ltd.

James Parkinson has started a new company ‘Made By Bob Holdings Ltd’ which will buy the food bottling and food packaging side of the business.

So, what will happen to the c. £340k of debts?

For clarity - I am not suggesting that anything illegal or dodgy is taking place, however it is a very interesting insight into how companies can be constructed, and what happens in the event of an administration - the article is clear in saying that they have worked with those to whom money is owed, so it should be assumed that all creditors are happy with the plans...

In parallel news:
Popular Cirencester restaurant wins two awards
http://www.wiltsglosstandard.co.uk/news/16209574.P...
The same outfit wins two awards...

fascinating...

[Starfighter]

Not surprised. Expensive for what they served.

First glance it looks like a structure setup to protect the directors from any liability.