Sat, 25 May 2013 | ADMINISTRATION
A bidding war could kick off for online retailer Coggles, which went into administration earlier this month.
According to the company's administrator, Begbies Traynor, more than 40 enquiries have been received following the insolvency. Andy Clay, joint administrator of Coggles, told Drapers Online: “We have received a good deal of interest in the business from some serious potential purchasers and we're optimistic that we can bring about a positive outcome.”
The case highlights the importance of being aware of distressed businesses for sale as soon as they hit the market. The date for final offers has been set as the end of the month and sale packs have already been sent out, meaning that serious buyers could well be in dialogue with the administrators already.
The sale is further complicated by the fact that Begbies Traynor are pursuing a sale of the company's assets, as well as the option of a going concern. Mr Clay told the York Press that the Low Petergate premises of the retailer has been put on the market for £1.6 million. He added: “We are currently exploring all options including the sale of the freehold of the retail unit in Low Petergate.”
Coggles had recorded strong levels of growth in the months leading up to its administration, but problems with the timing of securing funding meant that the firm hit a wall and ran out of options. It had sought a second round of investment of £4 million to aid growth, following an initial £3 million from Manchester Square Enterprises in 2011.
The company was established in 1974 as Sarah Coggles and went on to expand its initial retail premises into an online business following the success of the local stores in York.
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