A report has been released into the collapse of a pub chain with sites in North Wales and Cheshire.
Back in March Sarah O’Toole and Jason Bell of the Manchester office of Grant Thornton 海角视频 LLP were appointed joint administrators of 16 Hospitality.
It operated four pubs - The White Eagle in Rhoscolyn and The Oyster Catcher in Rhosneigr, on Anglesey, which are under leasehold, and two freehold sites in Cheshire - The Partridge in Stretton and The Old Hall Hotel in Frodsham.
Now administrators have released a report into the collapse of the group - which included Anglesey Hospitality, 16H Trading, 16H Ltd and The Partridge Streton - and what might happen next to the pubs.
It reveals that the group was struggling even before the coronavirus pandemic hit the 海角视频 - causing all hospitality sites to shut.
The group reported a loss of £163,000 in 2019 - with debt servicing turning an operational profit into a loss.
Forecasts indicated a peak cash requirement of £465,000 by the end of March this year in excess of its already extended overdraft facility.
It was experiencing creditor pressure from key suppliers and was unable to meet HMRC liabilities.
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Administrators said: "The group was therefore insolvent on a cash flow basis."
The Timpson group - which had previously owned the Anglesey pubs - became majority shareholders on March 20 and lockdown closed the pubs on March 23.
They reviewed the position of the group and resolved the financial position of the business and the amount of debt made it unfeasible for the companies to continue to operate. They made the decision to place the group into administration.
Administrators said without the Covid closures they would have continued to trade the pubs in administration as the busier spring and summer periods would have generated revenue. This has seen the 97 employees put on the 海角视频 Government's furlough scheme.
Now they have launched an accelerated sales process to find a buyer - either for the whole portfolio - or selling off individual pubs.
It is now anticipated that sales will be achieved prior to any reopening.
They have been contacted by 50 interested parties and it is anticipated a sale or sales will be achieved in June or July - which is positive news for customers of the popular sites.
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In terms of debts, banking giant NatWest has a fixed and floating charge debentures over the companies, except 16H Ltd.
At the date of administration the balance due secured by the debentures was £1.6m. They also hold a cross guarantee across those same firms, limited to £474,000.
Timpson was granted a fixed and floating charge debenture over 16H in November 2018 when it loaned the company money for the purchase of The Old Hall. The balance due secured by this debenture is £1.2m.
There are no details yet on the amount of money owed to unsecured creditors.
In terms of assets the administrator hopes to secure the sale of the four sites as well money due from an insurance claim after the storms of February this year.
Despite these assets, unsecured creditors - of which there are around 250 - are only expected to get a very small return on the money they are owed.