Crafter’s Companion: Huge debts revealed at firm rescued by Dragons’ Den star Sara Davies
Crafter’s Companion, the company started by Dragons’ Den star Sara Davies while at university, owed almost £20m when it collapsed into administration earlier this month before being rescued, it has been revealed.
The company appointed Interpath to oversee the process on 7 January in a move which has led to its Barlborough store closing and the loss of ten jobs.
However, the firm’s locations in Evesham will remain open after the majority of the business was rescued by Sara Davies.
The Dragons’ Den star has once again become the majority shareholder in the company she founded in 2005.
Crafter’s Companion sells crafts supplies is headquartered in County Durham.
In the year to 31 March, 2024, the company made a loss of £6.7m after also losing £5.1m in the prior 12 months.
According to a document filed by Interpath with Companies House, Growth Partner and its holding entities are owned around £8.2m as secured creditors.
The administrators said it is highly unlikely that there will be enough funds to enable a distribution to them.
Also a secured creditor, Santander was owed around £1.9m when the company entered administration.
That total will be reduced by the approximately £400,000 in cash held in Santander bank accounts by the company.
The administrators added that it is likely the bank will receive a partial dividend but that it will not recover its debts in full.
HMRC, as a secondary preferential creditor, is owed £1.1m – which it is “highly unlikely” to receive any of that total paid back.
The administrators added that unsecured creditors, who are owed an estimated £7m, are also highly unlikely to receive any money.
On how Crafter’s Companion entered administration, Interpath said: “The company has incurred trading losses since 2022 as budgeted growth was not achieved.
“The business also suffered form Covid-driven supply chain issues and the insolvency of a key teleshopping partner.
“These led to building cash constraints and creditor pressure.
“Despite strong support from growth Partner, the company could not deliver a turnaround and forecast a significant funding requirement.
“The company was unable to secure sufficient further funding from its incumbent investors and instructed Interpath to identify and comment on potential restructuring options.”