Greengrocer Stokes collapsed with debts of nearly £1.5m, its administrators have revealed.
The South West independent, which had 36 stores, fell into administration last October. KPMG's report shows Stokes owed 226 creditors a total of £1.47m when it failed.
Fresh produce wholesaler Bristol Fruit Sales was owed most, £228,000, and other wholesalers badly hit included Mack, M&D Kidner and Total Produce, which were owed £84,361, £48,546 and £30,347 respectively.
KPMG wrote that Stokes had fallen into trouble after cash flow had fallen to a "critical" level and the company could not continue to repay its debts.
"Since 2008, Stokes has suffered substantial losses as a result of difficult trading conditions, with sales reducing each year on a like-for-like basis," KPMG said. "Cost savings were made where possible but the continuing losses created significant cashflow problems."
KPMG added that Stokes started an operational and financial restructuring last August and closed nine loss-making stores in early October. However, its directors were unable to secure financing for the restructure and the company was placed into administration.
The report revealed that five Stokes stores were sold in October to Argyle Trading, the team behind importer Premier Fruits, for £180,000.
A further three, in Exeter, Exmouth and Teignmouth, were sold to Stokes & Johnson, a company belonging to Andrew Johnson, the husband of Stokes director Louise Stokes-Johnson, for £30,000. All other stores were closed by KPMG.
The South West independent, which had 36 stores, fell into administration last October. KPMG's report shows Stokes owed 226 creditors a total of £1.47m when it failed.
Fresh produce wholesaler Bristol Fruit Sales was owed most, £228,000, and other wholesalers badly hit included Mack, M&D Kidner and Total Produce, which were owed £84,361, £48,546 and £30,347 respectively.
KPMG wrote that Stokes had fallen into trouble after cash flow had fallen to a "critical" level and the company could not continue to repay its debts.
"Since 2008, Stokes has suffered substantial losses as a result of difficult trading conditions, with sales reducing each year on a like-for-like basis," KPMG said. "Cost savings were made where possible but the continuing losses created significant cashflow problems."
KPMG added that Stokes started an operational and financial restructuring last August and closed nine loss-making stores in early October. However, its directors were unable to secure financing for the restructure and the company was placed into administration.
The report revealed that five Stokes stores were sold in October to Argyle Trading, the team behind importer Premier Fruits, for £180,000.
A further three, in Exeter, Exmouth and Teignmouth, were sold to Stokes & Johnson, a company belonging to Andrew Johnson, the husband of Stokes director Louise Stokes-Johnson, for £30,000. All other stores were closed by KPMG.
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