Acid attack aftermath contributed to Mangle administration

"Significant reputational damage" and operational losses following an acid attack at an east London nightclub have been blamed for its parent company falling into administration.

On 17 April Arthur Collins, the ex-boyfriend of reality TV star Ferne McCann, threw the corrosive substance at guests at Mangle. He has since been sentenced to 20 years in prison.

According to an administrators’ report filed with Companies House for parent company Calabrese House, the nightclub suffered “significant reputational damage” as a result of the incident. The business also included Wringer & Mangle restaurant in the same building, and the nearby Hoxton Pony nightclub.

The Mangle closed following the incident and was rebranded as the Hangar, but despite this, Wringer & Mangle and the Hangar continued to make operational losses and relied heavily on Hoxton Pony revenue and shareholder support.

Shareholders were approached on numerous occasions for additional funding and ad-hoc bridging loans to meet trade supplier debt and HMRC commitments.

The Hoxton Pony was put up for sale to clear trade supplier debt and return some funds to shareholders, however HMRC filed a winding up petition against the company before a sale could be completed.

Shareholders declined requests for additional funding, and Ben Woodthorpe and Simon Jagger of ReSolve Advisory were appointed as joint administrators on 12 September. In total 43 employees were made redundant.

In the administrators’ report, losses of £534,978 are detailed for the year to 31 January 2019. A sale of the Hoxton Pony is expected, however, the lease of Wringer & Mangle and the Hangar has been surrendered to the landlord.