Tue, 22 Oct 2024 | ADMINISTRATION
Football leisure group Active Arena CIC has slid into administration after being hit by rising bills during the cost-of-living crisis.
The Lincoln-based firm which runs three purpose built indoor football pitches for 5-a-side games and a sports bar, appointed Mark Hopkins and Ian Ross of FTS Recovery Ltd as joint administrators following the closure of their customer-facing premises on October 3rd.
The company, which was launched in 2019, was forced to cease trading on October 10th when severe cashflow shortages resulted in the disconnection of the its electricity supply.
FTS Recovery said that despite the popularity of the Active Arena venue, the company’s profit margin had been seriously depleted by rising energy prices and other cost increases associated with the cost-of-living crisis. With the company’s cashflow already stretched by the Covid pandemic, this ultimately made it impossible to continue trading.
According to its most recent accounts for the year to August 31, 2023 the company reported a turnover of around £280,000 up from £216,000 the previous year. Profit before tax came in at £16,395 up from a loss of around £24,000 in 2022.
However, current assets were £46,623 compared with net liabilities of around £123,000.
FTS Recovery said it is now actively seeking a buyer for the company and its assets, with a view to its continued trading as a going concern at their current premises. The sale will be managed by FTS Recovery’s appointed agents, Eddisons.
Hopkins, insolvency practitioner at FTS Recovery, said: “The closure of the Active Arena site will be a blow to the local community who have welcomed the award-winning facility as a fun and safe place to socialise and become active. We are eager to arrange a sale that will allow the company to return to serving its loyal customers as quickly as possible.”
He added that the arena was an excellent opportunity for the right buyer to “build on what is already an integral part of the community with a strong customer-base and brand recognition”.
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