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  • Insolvency review - Week 25

     

    RCM Weekly review - June 2019 - Week 25

     

     This week: UK public sector deficit widens to £5.1bn in May and Bathstore, the UK's largest bathroom retailer, is on the brink of going into Administration.

    21st June 2019

     UK public sector deficit widens

    UK public sector deficit widens to £5.1bn in May.

    ONS has released UK Public sector finances for May 2019. Borrowing for May 2019 was £5.1 billion, which is £1.0 billion more than recorded in May 2018.

    Borrowing in the current financial year-to-date (For the 2 months of April and May 2019) was £11.9 billion which is £1.8 billion more than in the same period last year. However, the financial year-to-date April 2018 to May 2018 remains the lowest borrowing for that period since 2007. Borrowing in the latest full financial year (April 2018 to March 2019) was £24.0 billion. This is £17.8 billion less than in the previous year (April 2017 to March 2018), and the lowest FY borrowing for 17 years.

     

    Public Sector Net Borrowing (June 2014 to May 2019)

    UK PSB 2014 to 2019 Q1

    Source: ONS

    Read the Full ONS release here:
    Public sector finances, UK: May 2019


    19th June 2019

     Bathstore facing Administration

    Bathstore faces going into Administration with 168 stores and 700 jobs at risk.

    Bathstore, the UK’s biggest bathroom retailer, is reportedly lining up Advisory firm BDO to handle a potential administration. This comes after recent losses and it is now understood that the current owner, American billionaire Warren Stephens is unwilling to inject further cash ahead of this month’s rent day.

    The company was founded Patrick Riley and Nico de Beer in 1990, opening the first store in Croydon, South London. They expanded to 33 stores and sold it to the builders’ merchant Wolseley in 2003. In their decade of ownership Wolseley expanded rapidly increasing the store network to 170 stores by 2012. During the housing market downturn that followed the financial crisis, the company struggled and private equity firm Endless bought the firm from Wolseley in a £15m cash deal. Just 2 year later in 2014, Warren Stephens since became owner when he backed a management buyout. In 2012 Wolseley sold Bathstore to the private equity firm Endless in a £15m deal but the company changed hands just two years later when it was acquired by the Stephens investment firm.

    Bathstore is based in Welwyn Garden City, operates from 168 stores and employ about 700 people. The last set of accounts filed with Companies House show it made a pretax loss of £22million in the year to July 2017.

     

    Read more here:
    https://news.sky.com/story/retail-carnage-deepens-as-bathstore-nears-collapse-11745165


     

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    Award Seal Richard Cacho

    Richard Cacho Awarded No. 1 Insolvency Practitioner in Norfolk

    Richard Cacho award article