Mrs Kathryn Baile to buy the assets of Simon Baile's ExCellar Ltd?

Administrator Stephen Hunt on Linkedin: Insolvency, Litigation, Forensics

On 4th October 2012 a new company called Baileco Ltd was formed with 42 year-old Kathryn Baile as the sole director with a registered office at 145-157 St John Street, London EC1 – a well known accommodation address. On 14th November 2012 the company changed its name to Prebinvest Ltd. From a filing with Companies House on 4th December 2012 Prebinvest Ltd had a declared capital of £18,158.  

Jim's Loire understands that Prebinvest Ltd has lodged with Stephen Hunt of Griffins, the newly appointed administrator, a bid for £75,000 for the assets of ExCellar Ltd. The bid was apparently submitted soon after the administration order was made by a solicitor with the assurance that it represented the true value of the company's assets.

In December 2012 Baile told OLN: “Excellar will still be a family-owned business, it always will be." OLN 14.12.2012.

I assume that Stephen Hunt will use his forensic skills to establish the events that led up to ExCellar Ltd going into administration. Whether Prebinvest was formed specifically last October to take over the assets of the failing ExCellar Ltd or whether it was set up for some other purpose. From filings at Companies House no details were supplied as to the nature of the new company's business.  Was Simon Baile, as the sole director, aware that ExCellar would be unlikely to be able to pay for any orders placed in the latter half of 2012? This would include a substantial order of Champagne. Also whether any of the £75,000 bid by Prebinvest Ltd has come from ExCellar Ltd? But I'm sure Mr Hunt knows better than I do the questions that should and need to be asked. 

From Linkedin Stephen Hunt's specialities: 'Fraud investigation, and investigation of claims against professionals for fraud or negligence, including Licensed Insolvency Practitioners. Complex insolvency situations and rescue. International Insolvency.' 

ExCellar Ltd: why Simon bailed out of the Paris shop

Rue des Écoles, Paris (Google maps)

Turnover in the ExCellar shop in Paris had been in decline for several years – down by a third over three or four years. Not helped by a lack of stock due to suppliers being owed money. I understand that some 35,000€ is currently owed to ExCellar's French suppliers. However, the situation became critical at the end of November/beginning of December 2012 when the Direction Générale des Finances Publiques - service des Impots des Entreprises blocked ExCellar's French bank account with HSBC using a l'inscription de privilege. The French authorities took this action as ExCellar Ltd owed them around 18 months of social security payments for their employees (believed to be in the region of 100,000€) and some six months of TVA (VAT). 

The effect of blocking the account meant that monies taken by the business would go to the French tax authorities until the outstanding debt was paid off, so no chance of a profitable Christmas trading period. As already posted Baile arrived at the shop with a truck on Friday 7th December, emptied the shop and drove back to the UK. The Paris stock was then sold through the UK branches. 

In an OLN news report (14th December 2012) Baile said of the closure of the French shop:  “Next year we will also make changes to our Fulham and Farringdon stores. I would have loved to stay in Paris, but in the end it was just too hard. You can keep digging but then you have to stop.”

Not entirely candid in the light of the freezing of the ExCellar bank account by the French Government! 

        

'Retail genius' Simon Baile in administration again

The Farringdon Street Oddbins – one of five shops Baile took on 

Simon Baile's ExCellar Ltd went into administration yesterday. See Harpers report here. Apparently Baile's company was facing a winding up order brought by South Western Trains.

Following the collapse under Baile of Oddbins he bought five shops from the administrator. Some soon closed down – see here.