The company traded from high street premises and the lease attracted an annual rental of £12,500.
The pet shop had continued to trade moderately successfully, increasing sales year on year. During the last year a turnover of approximately £220,000 was achieved with a profit of just over £35,000.
However, a large branch of a well-known retailer opened on the high street selling many pet products at discounted prices and creating a significant drop in sales.
In addition, the local supermarket, which was a key to footfall in Dorking as a whole, closed for a two-year refurbishment programme. With sales having fallen by 40% and their reserves eroded, the company began to fall behind with payments to creditors.
Having learnt that another long-established equine business in Dorking was planning to open a retail pet outlet and in the belief that this would further impact on sales, advice was sought and having concluded that ongoing trading was untenable, the shop closed owing almost £20,000 to trade and expense creditors and just over £50,000 to HM Revenue and Customs. The advice provided by AABRS was to place the company into liquidation.
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