Bad debts have been blamed for the collapse of Aberdeen firm Bespoke Decorators, with the loss of 15 jobs.
Joint liquidators at corporate restructuring company Begbies Traynor have urged creditors to come forward and make a claim.
Sources have suggested Bespoke folded owing nearly £245,000.
The creditor position remains to be finalised.”
Ken Pattullo, Begbies Traynor.
Mr Pattullo said Bespoke had been trading “relatively well” but suffered difficulties receiving payment from customers within its payment terms.
He added: “This led to disputes on various contracts which further prolonged payment of the sums claimed.
“This resulted in significant cash flow difficulties which had a chain reaction to suppliers, meaning supplies were not readily available until credit accounts were settled.”
The unpaid debts and difficulty sourcing supplies which would have allowed it to generate more income led to Bespoke’s owners, Brian and Debbie Kerr, seeking advice from the company accountant.
“It was determined that liquidation proceedings seemed the most appropriate way forward,” Mr Pattullo said, adding: “Fifteen employees were made redundant. The creditor position remains to be finalised. Any creditor is encouraged to contact Begbies Traynor in order that their claim can be recorded against the liquidated estate.”
Mr Kerr has already launched a new business, Interiors by Bespoke, which Mr Pattullo said was unconnected to the liquidation process and not part of any “pre-pack” deal.
Business activities of Interiors by Bespoke include electrical installation, plumbing, heat and air-conditioning installation, joinery installation and painting, according to details lodged at Companies House.
Bespoke Decorators supplied painting and decorating services to commercial and domestic customers. The business was launched by the Kerrs in Portlethen, near Aberdeen, in 2019 to “meet demand for high-quality workmanship” across the north-east. A growing team relocated to new premises on Dyce Drive, Aberdeen, during 2020.
It was hoped the move to Dyce and a three-year lease would act as a springboard to further growth.
Bespoke was at the time winning more work in Angus and on Tayside, and Mr Kerr – who hails from Dundee – said he was exploring opportunities to expand the business south, including through opening a new office and storage facilities.
According to one creditor, who asked not to be named, the firm’s demise earlier this month has left “a lot of bad feeling locally, with unpaid suppliers, tradesmen and staff.”
Figures from Begbies earlier this year showed Scottish companies seemed to have weathered the storm of the pandemic better than firms in other parts of the UK, but Mr Pattullo warned there was likely worse to come amid an escalating cost-of-living crisis.