A team of administrators has been appointed to investigate why Brighton Holiday Homes closed suddenly leaving customers and clients out of pocket.
Paul Zalkin and Maxine Reid of business advisory firm Quantuma have been appointed as joint administrators of the company which specialised in short-term holiday lettings in the local area.
This follows action taken by a major creditor after the business closed unexpectedly on 29 May. The reasons for the failure of the business are not known.
Paul Zalkin, Joint Administrator at Quantuma said: “Our immediate focus will be to contact the company’s directors so they can assist us in managing communications with customers who have been left out of pocket, with no explanation as to what has happened to their bookings.
“We will robustly investigate the company’s financial affairs and the circumstances leading up to its failure.
“At this early stage the situation is uncertain, but we will endeavour to secure the most positive outcome possible under difficult circumstances.”
The company is owned by Michelle and Neil Stonehill of Chesham Street, Brighton.
When I see the word “robustly”, I have my doubts. Where is the meaning?
So easy to type “robustly”, so hard to put it into practice.
When I lawyer, or in this case an administrator, stay “robustly” they mean spend your money and do **** all.
Sorry when I hear that word now it make me cringe from experience
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Quantuma seem to be doing well in The City.
An adminitrator is normally appointed by the directors of a company or a creditor with a charge over the business. In this case this would be Funding Circle Trustee Ltd.
An administrator has a duty to distribute any funds revovered in order of legal prefrence namley; Fixed charge holders, Liquidators’ fees and expenses, Preferred creditors, Floating charge holders, Unsecured creditors,Interest incurred on all unsecured debts post-liquidation,Shareholders.
Preferreed creditors includes employees, unsecured creditors is the taxman and customers that paid and didn’t get their goods as well as suppliers.
Given the nature of the business and and the low amount of share capital and assets I would be suprised if much money comes out of it.
Of course if the administrator suspects foul play they must report it. if they deem the directors sufficiently delinquent they may also report that which may result in their disqualification from beind a director for a periond of time.
Contrary to the story above an adminstrator is not appointed to investigate “why” but their primary purpose is to reasilse money for the people and compnaies who are owed money.