The Bookseller.com

4th July 2009

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Powerfresh racks up £386,000 debt

30.04.08 Graeme Neill

Gift book wholesaler Powerfresh plunged into administration after it racked up debts of £386,982, its administrators have revealed.

Begbies Traynor is recommending the business be sold to web design company Little Black Dog, whose m.d. Malcolm Worner is also a director of Powerfresh. The administrators will meet with creditors in Northampton on 7th May to outline their proposals for the business.

Gary Pettit from Begbies Traynor said that the assets available to creditors were worth £445,354, so he was confident of those owed money being repaid.

“Continuing to trade is better than if the company was to go into liquidation,” he said. “We have enhanced the value of the assets. Creditors seem to accept what we are doing is the best way forward so we are confident the proposals will be achieved.”

The report revealed that among the reasons why the business went into administration was a dispute with former director David Llewellyn. He left the company in 2006 and is owed £100,000 for his shareholding.

Financial Graeme Neill Powerfresh