A BUSINESSMAN whose kitchen company went bust owing millions of pounds has seen a second company he owned go into administration.
Bill Gleave, who owned kitchen company BGH until it collapsed in 2008 with the loss of 250 jobs, also set up Sustainable Leisure, which operated an eco village in North Wales.
But following the collapse of the property market, the company, based at Nature’s Point at Pistyl, near Nefyn and reportedly valued at around £2.2 million, has called in administrators.
Brian Green and Mark Firmin, partners in KPMG’s Northern Restructuring practice, were appointed as joint administrators July 21.
A spokesman for KPMG said: “The business, which wanted to sell its eight barns and eight lodges, got into financial difficulty during a period when both the property and leisure industries suffered in the recession.
“The administrators are trading the business on a lettings basis and retaining the four employees while seeking to sell it as a going concern.”
They are currently in discussions with interested parties to sell the five acre site, which opened in April — just months after BGH failed.
In December last year Bernstein Group Holdings, better known as BGH, went under with debts of £8.6 million and little in the way of major assets to pay creditors.
A total of 250 people lost their jobs and angry creditors tried to remove company property when they found out it had gone bust but had carried on accepting deliveries right up until going into administration. But creditors of the collapsed kitchen maker face a long wait for their money because of the company’s large debts relating to an earlier period of administration.
The Bernstein Group was originally acquired from administrators in 2004 by then-chairman Mr Gleave. But administrators were called in again in 2006 following problems at its retail arm, The Kitchen Studio. The company, which was based on the Wingates industrial estate, had an agreement to pay back those debts over a period of time.
Creditors agreed to a company voluntary arrangement (CVA) in early 2007 in which BGH would pay £744,000 by May 2009. But the agreement collapsed last December when it failed to make a £50,000 payment and administrators were appointed.
The original creditors are waiting to see if they will receive a payout from administrators Price Waterhouse Coopers which moved into BGH on December 5, 2008.
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