Latest update on Managing Director, Michael Marcus, caught growing £27,000 of cannabis September 2013, see here.
We have received correspondence from the Administrators of Direct Fruit Supplies. It takes a little bit of wading through, but this is my understanding of the latest state of play.
- Direct Fruit Supplies entered into a CVA (Creditor’s Voluntary Arrangement) but were unable to meet its obligations, so Administrators were called in
- The Administrators called in an asset valuation company who said that it would be better to sell the business as a going concern rather than receive less money on a break up value
- Six businesses expressed an interest in the business, but no-one came forward to make an offer, so the directors of the old Direct Fruit Supplies made an offer to buy the assets of the business for £74,000, in the name of Direct Fruit Suppliers (Leeds) Ltd, which was accepted on 11th April 2012
- A £10,000 deposit was made and monthly amounts agreed to run until Feb 2013
- Two employees have put in claims for holiday pay and unpaid wages, but it looks like neither have been paid
- The new company were unable to make all of the payments, still owing £52,500, so in August 2012, the Administrators agreed to revised terms but these have not been met
- More time again has been offered to the directors of the new company to allow them to pay off the amount agreed to purchase the assets of the old company, Direct Fruit Supplies
- Unsecured creditors (including us, Ribblesdale Cheese) amount to £365k – and no, none of us will see a penny, as the Administrator’s statement says, ‘with regard to unsecured creditors, we do not anticipate that there will be sufficient realisations to enable a distribution to this class of creditor’.
- Interestingly, the Joint Adminstrator’s costs total £74k until 10th April 2013