The administrators for CMC have now published the Estimated Statement of Affairs, which has to be said does not make pleasant reading. The accompanying documents also explain that there was an initial plan to sell to the company’s assets to Bury Promotions (UK) Ltd, (owned by Tony McFarland, and an original founder of CMC), however this offer was withdrawn following the closure of the CMC offices. The administrators subsequently received offers for the assets ranging from ?250 to ?34,950. The highest bidder withdrew their offer following a meeting with the administrators & before due diligence. The company’s stock, goodwill & other assets were finally sold to Swifts of Luton Ltd (a stocking & fulfillment services company based in Luton, Bedfordshire) for ?30,000. Apparently the administrators have been advised that there is a directors loan outstanding of ?86,932 which is currently disputed by the director. Sadly, it appears that 314 promotional merchandise trade suppliers have lost money. The total of the promotional merchandise trade suppliers debt comes to ?1.2 million, out of the total debt of ?1.7m. The highest trade supplier creditor was for ?84k, with 9 suppliers owed over ?20k, 4 suppliers over ?30k & one over ?55k. Many other suppliers have also lost substantial amounts & are still feeling the pain from CMC’s demise.

Published on: December 16th, 2009