Unsecured creditors of Hampshire ornamentals nursery Lowaters, which include several other nursery businesses and suppliers, are unlikely to receive a full pay-out, according to the joint administrators.
In their first report they say there may be a payment under the prescribed part provisions of the Insolvency Act, which amounts to a percentage of the value of the company’s property subject to a floating charge. This fund is estimated at £20,000.
The report says the Garden Beauty website and all stock has now been sold, and site leases surrendered.
It says the pandemic was central to the collapse of the company, which had increased production significantly in 2019. Its online trade increased initially during the time outlets were closed but slowly fell back, leaving it with an £80,000 loss in 2020. Subsequent issues with crop timings and continued workplace restrictions inflamed inflationary pressures. By early summer 2022 turnover was £300,000 behind expectations and was then hit again by the hot summer which depressed sales.
Lowaters stopped trading in August and made all staff redundant before administrators were appointed in October.
