Government department HMRC has filed a petition to wind up former Sunderland shirt sponsor Great Annual Savings.
The Seaham based energy consultancy, launched 10 years ago, is one of several brokerages which has seen rapid growth, and in the last two years it has expanded its offices at Spectrum Business Park, County Durham. The company, which helps businesses to reduce their variable costs in energy, water, telecoms, merchant services and insurance, furloughed large numbers of staff during the pandemic, but revenues remained consistent at around £20m in most recent accounts, covering the year ended June 2021.
However, since accounts were filed, the firm’s employee numbers of 300 has dropped to 160 and it is also battling rising costs. The accounts also highlighted how outstanding HMRC liabilities arose during Covid-19 over a period of time, but that it had put an arrangement for repayments to HMRC. Now, however, the London Gazette – the official public record for the insolvency service – shows that HMRC has raised a petition to wind up Great Annual Savings Company Ltd, and a hearing has been sent for the High Court in London next week.
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A short notice posted on the insolvency department’s official public record website says: “A petition to wind up the above-named Company, of Sea View Hq Spectrum Seaham, 7 Spectrum Business Park, Seaham, Co Durham, presented on 21 October 2022 by the Commissioners for HM Revenue and Customs, of 14 Westfield Avenue, Stratford, London, E20 1HZ, claiming to be creditors of the company, will be heard at the High Court, Royal Courts of Justice, 7 Rolls Building, Fetter Lane, London, EC4A 1NL on 7 December 2022.”
The group – which was Sunderland’s main shirt sponsor until earlier this year when Spreadex secured a new SAFC deal – said it has been in discussions with HMRC and that it has also called in restructuring specialists to help it return to growth. It said it was disappointed in the latest move by HMRC.
A spokesperson for Great Annual Savings Group (GAS) said: “GAS is disappointed in this course of action, which goes against a previously indicated timeline of actions with HMRC. This course of action will not affect GAS customers’ contracts or the services they receive from GAS.
“Like most UK businesses, GAS has been significantly impacted by the Covid-19 pandemic, subsequent energy price crisis and war in Ukraine. Prior to the first of these global crises, GAS was a successful, high-growth and profitable business-to-business procurement provider, helping 14,000 small and medium businesses reduce their operating costs.
“During the pandemic, the business’ ability to deliver these services was curtailed by lockdowns and revenue was hampered as a result. Despite these challenges, GAS still has a good underlying profitable and cash generative business, which, following a restructuring of the legacy debt, can continue to grow and meet the needs of its stakeholders into the future.
“Recently, GAS has appointed FRP Advisory and Shoosmiths LLP to work on a restructuring proposal. These businesses are experts in their field and the proposal is now at an advanced stage and will soon be presented to creditors. GAS has engaged with HMRC on the relevant details of the restructuring proposal, which would remove some of the pressures of dealing with legacy Covid-19 debt and enable rightsizing of the company. This would allow it to build on the positive performance of 2022 and enable the company to return to growth; ultimately protecting over 160 UK jobs.
“Despite this, HMRC have refused to engage with that process to date and have, in the view of GAS, actively sought to accelerate pressure on the company, which has included the presentation and advertising of the winding up petition on Friday. This action could be perceived as an attempt to frustrate the restructuring process. GAS looks forward to completing the restructure as soon as possible and returning to growth.”
An HMRC spokesperson said: “We take a supportive approach to dealing with customers who have tax debts and only file winding-up petitions once we’ve exhausted all other options, in order to protect taxpayers’ money."
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