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Principle Leisure Goes into Administration
April 11, 2011
On Friday 1 April 2011, Andrew Haslam and Gerald Krasner of Begbies Traynor in Newcastle were appointed as Joint Administrators of several companies within the Principle Leisure Group.
The group is based in Washington and operates the Popolo branded bars in Newcastle, Sheffield and Nottingham, along with a number of additional outlets. It encountered cash flow difficulties due to the opening and refurbishment of several new outlets and the general downturn in the licensed sector, resulting in tax arrears being accrued. The company’s management structure was weakened by the illness and passing of Joseph Peel, director of Principle Leisure.
Joint Administrator Andrew Haslam said, “Following the receipt of demands from HM Revenue & Customs, the directors attempted to negotiate payment terms, but unfortunate, they were unsuccessful. In order to ensure that the group was protected and the opportunity provided to place the group on the market, the directors took steps to seek the protection of an administration order.”
Mr Haslam added, “The outlets are now being operated under licence whilst a purchaser is sought. The process undertaken will, at least in the short term, protect the contracts of over 300 employees and offer the group the best opportunity to identify a purchaser.”
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