Creditor fury over FieldCandy sale

A creditor of Chesterfield-based FieldCandy has reacted with anger at not receiving cash owed to him after the firm was sold out of administration.

Administrators from Smith Cooper sold FieldCandy, designers and manufacturers of outdoor products, to Hubaco, the Alfreton-based company behind the lightest tent in the world and some of the world’s best known premium outdoor brands, including Terra Nova, Wild Country Tents and Extremities.

The deal saved four jobs.

However, Johnny Lyle, who runs an eponymous marketing, brand and SEO business in Nottingham, contacted TheBusinessDesk.com earlier this week angry that he hadn’t received any of the money owed to him, despite the firm being sold.

Lyle said: “If the business was actually sold to Hubaco, why is there no cash to pay any creditors, of which I am one. I am a sole trader and been done for around £1,800. Jobs may have been saved but only because the little man like me has paid for their errors and that feels very unfair.”

Responding, Dean Nelson from Smith Cooper, told us: “The sale consideration to acquire the business and assets as a going concern was circa £23,000 having marketed the company to around 1,600 likeminded businesses.

“We had eight expressions of interest but only one formal offer from Hubaco.

“Agents had valued the business and assets both on a going concern and forced sale basis, and the offer received exceeded both of those amounts, and as such, was recommended to be accepted by my agents.” The consideration flows to creditors in an order of priority in insolvency, and in this instance, there are two secured creditors owed circa £130,000 and outstanding wage arrears circa £4,000, before monies would be available to unsecured creditors of which Mr Lyle is one and who amount to circa £60,000.

Johnny Lyle
Johnny Lyle

Lyle pointed out that FieldCandy had raised £200,000 via Crowdcube in late 2015 to put into the business. He added: “Where has this gone? I even invested £500 here too, so got doubly stung.”

Dean Nelson said: “As regards the crowdfund, this position will be investigated in due course, however the directors state that the reasons for the company’s failure, was due to the company’s sales being insufficient to meet the substantial overheads being incurred, whilst pursuing a high growth strategy, despite cost cutting measures being implemented over 2016, to try and redress the pressure being put on its cash flow.

“The administrator will now commence his investigations into the affairs of the company and its directors, to determine the position as regards the company’s deficiency to creditors and losses/cash burn incurred.

“Due to the level of the ultimate sale consideration, the professional costs of dealing with this matter will result in unfortunately no dividend to unsecured creditors. This is based on current information and on known asset realisations to date.”

John Harris, the previous owner of FieldCandy did not respond to our enquiries.

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