Midlands business Paragon Interiors Group has gone into administration a year after Bibby Financial Services began providing it with invoice finance, Leasing Life understands.
Over the course of last year, Bibby provided Paragon Interiors with a total of £3m through a construction finance facility.
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Leonard Curtis Business Solutions Group was appointed joint administrators to Paragon Interiors Group on 27 February 2019.
The BBC has reported that Paragon Interiors Group is owned by Alan Hardy, who is also the owner of League Two division football club Notts County.
BBC Radio Nottinghamshire reported that Paragon had supplied capital to buy and fund Hardy’s takeover of Notts County in January 2017, but Hardy has said the football club will not be affected by the administration.
The BBC also reported yesterday that HMRC has issued a winding-up petition to Notts County over an unpaid tax bill, understood to be £200,000, with a court date set for 10 April, which Notts County is vigorously defending.
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By GlobalDataLeasing Life understands that Bibby Financial Services started working with Paragon Interiors in February 2018 and had worked with its executive team to overcome its challenges.
Despite this, Paragon’s losses continued to mount as it faced increasingly difficult trading conditions.
As losses continued to mount and as the only qualifying charge holder, Leasing Life understands Bibby Financial Services was left with no other option than to place the business into administration.
A spokesperson for Bibby Financial Services said: “We await the outcome of the administration process, and those wishing to find out more should contact Leonard Curtis directly.”
Leonard Curtis Business Rescue & Recovery said it was seeking offers for the business in order to preserve jobs and maximise the return to creditors. It is understood that Paragon Interiors employs in excess of 90 people.
Leonard Curtis confirmed that following its appointment as joint administrators of Paragon Interiors Group it was working closely with Notts County Football Club ‘to achieve a positive outcome for all concerned’.
The administrators also said it was supportive of Hardy’s attempts to find a purchaser for the football club, which was ongoing prior to their appointment.
Any parties with an interest in Paragon Interiors business or assets are instructed to contact the firm’s Manchester office as soon as possible on 0161 831 9999 or email keith.turpin@leonardcurtis.co.uk.
