PracticeConsultingKidsons in phone retailer rescue bid

Kidsons in phone retailer rescue bid

Three HLB Kidsons partners have been appointed administrators of mobile phone retailer The Phone People by the Manchester District Registry of the High Court.

They are chartered accountants Andrew Hosking, Patrick Wadsted and Rod Withinshaw.

‘The company went into administration because it over-expanded,’ said Hosking, adding that although TPP had grown massively in one year, it had borrowed quite heavily to do so. To add to its woes, TPP had changed its supplier of airtime and the previous supplier ‘demanded repayment in excess of seven figures, which the company was forced to pay.’

In house, the company also faced a dispute between managing directors Jason Pickthall and Anjad Baig. Pickthall left in the company in February of this year, while Baig remained and is still assisting with the administration, as is chartered accountant Howard Nicholson.

Hosking explained that when one of the company’s creditors, ‘a shop fitting company, issued winding up proceedings the company had no choice but to seek corporate action.’

The Phone People is continuing to trade and the outlook for the sale of the business and its assets is hopeful, with five expressions of interest in buying the company’s business and assets.

TPP employs 479 people, operating from 138 stores throughout the UK. Its Projected turnover for 2001 is Pounds 40m.

Links

http://www.hlbkidsons.co.uk

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