SKN Group ran out of funds as investors would not agree to further funding leading to closure of their operations and has been put into liquidation following a winding up order.

The Official Receiver has been appointed as liquidator and he will also investigate the conduct of current and former directors.

The latest accounts for year end August 2022, filed last September, showed that the company had outstanding debts and overdrafts of £35m, which had only been reduced by £750,000 on the previous year. FY2023 accounts are not due to be released until September. The £35m was used for medium term funding for the wider group.

The company reported losses of £262,000 on turnover of £1.14m for FY22, but had renegotiated banking covenants and stated at the time that ‘the group’s trading forecasts and associated cashflow projections were discussed with their lenders during a banking covenant reset after the financial period end’.

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