Quick Move Ltd - Case Update

The joint administrators of an online retailer of pre-owned branded clothing and accessories have sorted through a host of consignment issues, resulting in the return of over 99% of consignee stock by value to the rightful owners.

David Kirk and Daniel Jeeves of Kirks were appointed as joint administrators of Fulham-based Quick Move by the company’s directors in April, after the company suffered due to declining sales, increased costs, a recent office move exacerbated by the landlord’s decision to convert the office into residential property and the company’s inability to secure additional capital.

The joint administrators decided to continue trading the business to wind down stock levels and so that consignee items could be returned. In order to do so, the joint administrators arranged insurance, ensured the company’s proprietary software for tracking the over 55,000 items in stock was maintained and arranged trade accounts with couriers.

The business continued to be marketed for sale by LSH. Several parties were interested in the stock but LSH’s view was that the stock would realise a higher value if sold on the company’s own website at a progressively discounted closing down sale. This also saved removal, storage and cataloguing for sales costs.

At the end of April, 15 further staff were made redundant, reducing the head count to 35 people. The joint administrators’ objective was to leave the building because rent was £40,000 per month and had to be paid as an expense of the administration.

By 19 May, the joint administrators had received no offers for the business as a going concern and had already sold most of the more saleable owned stock and returned over 99% of the consignee stock by value to the rightful owners. On that date, all but one staff member who worked a further two weeks were made redundant. The joint administrators also vacated the site on that date.

The trading of the company has resulted in an overall loss of c.£250,000, but was necessary to reduce further expenses and significantly reduced the number of creditor claims.

There are no secured creditors. Preferential creditors are expected to receive 100p in the £, while a dividend to unsecured creditors is not expected.

The joint administrators have been assisted by Womble Bond Dickinson. Their latest progress report can be found HERE.