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 in administration – a few more details emerging

 The Oddbins shop at Farringdon Street – 

bought by Baile's ExCellar and now in play once more 

A few more details on Simon Baile's ExCellar Ltd going into administration and the events leading up this are now emerging. 

It is believed that the administration order was granted by a court in Manchester. The debt owed to South West Trains, who brought a winding upon order against ExCellars for unpaid rent on the now closed Surbiton Station shop is around £25,000. ExCellar moved to a cheaper site at 18-20 Brighton Road, Surbiton, Surrey KT6 5PQ but the rent debt was not paid.

There are also rumours that a bid of £75,000 to buy the assets of ExCellars Ltd has been lodged with the administrator – Stephen Hunt of Griffins. Apparently the offer of £75,000 is described as being 'a true value of the assets of ExCellar Ltd'.  

It is possible that there may also be a bid from the current owners of Oddbins, who might decide that the large premises at Farringdon, one of the sites bought by Baile from the Oddbins' administrator, could serve as a useful distribution hub to serve their London shops. 

Trade creditors include Les Caves de Pyrene, who are owed around £100,000, and ABS Wine Agencies, who are believed to be in for a substantial amount. In the case of ABS this is off-set by some of the debt being historic from a delivery that was due to go to Oddbins at the time of the collapse that Baile then took on.

Also, hearing that administration was imminent, Mike Awin, a partner in ABS, was able on Sunday to retrieve their stock that was in the ExCellar's Fulham shop. Then on Monday he was able to negotiate with the administrators that ABS stock couldn't be moved from the Ashtead shop until retention of title can shown. Awin was bemused that it needed six people from the administrators to be present at the Ashtead shop to establish which wines had been supplied through ABS. One had travelled up from Exeter. 

I wonder how many administrators would be required to change a light bulb?                     

The shop at Farringdon Street: May 2011 during changeover from 

Jim's Loire understands from sources that on the evening of 7th December 2012 Simon Baile emptied the contents of his Paris shop at 25 Rue des Ecoles. All the stock – apparently worth around 17,000€ before tax, the fridges and display cabinets were loaded into a truck, which Baile drove back to the UK. As the wine was now due to be sold in the ExCellar UK shops in the lead up to Christmas and was not for his personal consumption, Baile doubtless declared the wine at the port of entry and paid any duty and vat due on the stock.  

Jim's Loire also understands that the employees Baile's ExCellar shop in Paris are in limbo as apparently Baile has not yet lodged the necessary paperwork – either a dépôt de bilan or a cessation de paiement –  to close the company down in France, so although the employees are not being paid they are not formally unemployed so can't receive benefits. There will be a hearing before the Conseil de prud'hommes on 6th February. One of the employees has worked for the company for 32 years – originally for Simon Baile's father Nick.