Paver Smith hit by ‘perfect storm’ before administration

THE administration of Liverpool-based PR company Paver Smith left behind debts of £1.3m, according to newly-filed documents.

An administrator’s progress report showed that HM Revenue & Customs were owed £360,000 and that Merseyside Special Investment Fund were owed £448,500.

Some £325,000 of this was due in capital payments, while the remainder was due in balloon payments.

The bulk of the capital element has been repaid following the purchase of the business and assets of the company by Paver Smith LLP – a new limited liability partnership whose members include Dougal Paver, Rachel Smith, Jonathan Brown, Martyn Best, Chris Hulme and Helen Strother.

Other trade suppliers were owed more than £100,000, while Bibby Financial Services was owed £200,000 – although the bulk of this should be recoverable from money owed by former clients. A further £141,000 was owed to the firmer directors of the Paver Smith business.

Partner Jonathan Brown said: “Paver Smith LLP is on a stable and secure footing, and has very positive plans for the future.

“The new business continues to win new business and deliver great work for its clients. “It also continues to work with many of the old company’s suppliers, who have been happy to support us in our new structure.

“The old company was hit by a perfect storm of circumstances, two of which will be very familiar to many businesses: the downturn in the economy and the contraction in public sector spending.

“We were also hit by a bad debt of almost £120,000 which was directly caused by the Icelandic volcano and which removed, at a stroke, any comfort in our business plan.”