Prescott and Conran collapsed owing creditors more than £14m
Prescott and Conran collapsed owing creditors more than £14m after difficult trading conditions left the businesses "unviable".
The restaurant group fell into administration in June with the immediate closure of Parabola, Lutyens and Albion Clerkenwell. Les Deux Salons in Covent Garden closed in March and Albion Neo Bankside has also ceased trading.
The proposal of administrators Duff and Phelps, filed with Companies House, reveals the five businesses that closed all recorded pre-tax losses of up to £345,319 in the five months to 31 May 2018.
The report reads: "In common with a number of restaurant businesses, the companies had encountered continued difficult trading conditions incurring significant trading losses which were then having to be funded by the shareholders and Boundary [the sixth business in the group].
"Despite management's strong focus on operational turnaround and a number of injections of funding by Sir Terence Conran, Lady Victoria Conran, and Edmund Conran, the loss-making companies remained unviable."
Duff and Phelps reports that at the time of collapse the companies had "insufficient monies or assets available to meet ongoing liabilities as and when they fell due". This is despite Sir Terence lending the business more than £22m.
The amounts owed to creditors, including suppliers and HM Revenue and Customs, detailed within the report are:
Parent company Prescott and Conran: £3.8m
Lutyens: £1.4m
Albion Clerkenwell: £2.9m
Parabola: £2.2m
Albion Neo Bankside:£1.2m
Les Deux Salons: £2.5m
The Boundary: £169,000
Sir Terence purchased Boundary out of administration for £500,000.
The report reveals that 70 people were made redundant due to the collapse.
Prescott & Conran falls into administration with Parabola, Lutyens and Albion Clerkenwell closed>>
Conran moves control of Boundary Project as part of Prescott & Conran restructure >>
Prescott & Conran's Les Deux Salons in Covent Garden closes >>
