Silver Liner For Northwest Beauty Business

The business and assets of Stockport-based Beauty UK Cosmetics Limited have been bought by its previous managing director in a pre-pack administration deal.

The company, which traded as Beauty UK supplied make-up products such as nail varnish, lip gloss, and bronzer, both to retailers and direct through its website.

According to the administrators’ report, the company had ploughed money into marketing activities in order to distinguish itself in a highly competitive market.  However, it could not balance the books as it struggled with the discounted price demands of high-street retailers and the promotional requirements of the major retail became a costly burden.  Returns and damaged stock added further pressure to the company’s cash flow.

Whilst the company explored the possibility of a re-structure as part of a joint venture with its major supplier, this failed to materialise and the company made all staff redundant on 31 March 2015.

The latest accounts appear to show over £1.2m in unsecured creditors, whose claims will go unpaid.

The business is now expected to continue under the guise of Pearson Cosmetics Limited, whose sole director and shareholder is Michael Pearson, a former director and majority shareholder of Beauty UK Cosmetics.

If you think your business is struggling financially or you are interested in restructuring to help your business continue, contact Pauline Rigby, Head of Corporate and Restructuring at Forbes Solicitors, for free, no obligation insolvency advice on 0800 689 0831.

Pauline Rigby

About Pauline Rigby

Pauline Rigby is Head of the Corporate and Restructuring team at Forbes Solicitors. Pauline’s blogs cover a wide range of corporate issues, specifically areas including company formation, banking, joint ventures and shareholder matters, contractual matters and equity fundraising or investing.

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