Choccywoccydoodah has failed to secure a buyer for its brand, two years after going bust.
The high end chocolatier blamed increased costs and declining margins for the failure of its business, which went into liquidation owing almost £600,000 to customers, staff, suppliers, landlords, the city council and the taxman.
Administrators negotiated with one of its former shareholders to buy the brand in order to pay off some of those debts.
But a final liquidation report published on 28 April said the sale had not been achieved.
The report, by Sean Bucknall and Brian Burke of Quantuma Advisory, said: “Creditors will recall from my previous report that the liquidators had received an expression of interest in purchasing the goodwill, including the brand.
“However, this interest has not resulted in a sale of the goodwill being achieved.
“As previously outlined the directors paid a sum of £5,000 towards the costs of the liquidation with this sum contributed in consideration of the goodwill on the basis that it was to be repaid from any subsequent sale proceeds.
“Accordingly, as a sale has not been concluded, the goodwill now vests with the directors personally.”
Choccywoccydoodah’s directors were Christine Garratt and Christine Taylor.
The report also reveals that they personally repaid the £96,000 owed to the chocolatier’s bank, NatWest, and all the outstanding VAT.
Its employees, who were owed an estimated £36,903 in unpaid holiday pay and wages, were not paid anything.
However, the liquidators estimated that they would be eligible for a claim from the Redundancy Payments Service of £33,887.
Other claims were originally estimated at £465,543 and by last month, liquidators had received 24 claims totalling £324,986.
However, the company did not have enough assets to repay any of these debts.
Meanwhile, the company’s former shop in Meeting House Lane has been on the market via Graves Jenkins since last December.
Since September last year, its rent has been reduced from £50,000 to £42,500.
Pleased to see they paid the money back to the bank but didn’t pay their employees who will receive the pay they’re owed from that taxpayer I guess that shows where their priorities lie.
There are lots of stories behind bankruptcies… at least staff got most of their stolen wages … but the suppliers got royally ripped off …
Where to start.
600k debts.
One of the most expensive and unpractical locations for their shop.
No cheap tat for tourests to buy even though they had ques out the door.
This was a passion business, not a money maker thus dangerous for all involved.
You don’t rack up that kind of debt unless your making serious mistakes, often. Should have just taken a cheap shop a bit further out where deliver is easier, somewhere actual customers might venture to, not just day trippers.
Stale Cake Shop, says it all
I was really enjoying the show until I read this. The Employees should have been paid first. Bank and suppliers have insurance and far more ability to recoop their losses. Employees are the backbone of their success and they were treated like Milk Chocolate
I. will no longer watch this series.
sick of the small guy getting walked over.
greed