Company behind Sheffield’s Gatsby and Picture House Social liquidates owing £700,000 but both venues to remain open

The company's liquidator, however, told The Yorkshire Post that they understand both bars remain open and will continue to trade through new businesses, run by the same directors.

Liquidator Andrew Davenport, of Maxim, said: “To my knowledge, the former directors are setting up, or have set up, new companies to take on all staff and continue the businesses."

Regarding the reasons for the company liquidating, Mr Davenport added: “The directors cited difficult trading conditions and cost of energy in particular for one site, and the aftermath and recovery from Covid, as well as the cost-of-living crisis leading to people spending less money.”

This is not the first time the companies behind both Gatsby and Picture House Social have entered liquidation.

PH Social Entertainments Limited, the company previously behind Picture House Social, appointed liquidators in March 2020, owing £113,880. Gatsby Entertainments Limited appointed liquidators in February of the same year, with a debt of £277,213.

The companies owed a combined total of £208,043 to HMRC at the time of appointing liquidators in 2020.

Later documents posted to Companies House stated that no dividends would be available to unsecured creditors for either company, which included HMRC in both cases.

Both companies shared the directors James Paul O’Hara and James Nicholas Hill, who are also joint directors of Bar Public Limited.

Assets belonging to both companies were purchased by Bar Public Limited, including furniture and equipment.

During the liquidation of PH Social Entertainments Limited, the liquidator found that a “preferential payment” of £11,232.66 had been made to the then newly formed Bar Public Limited.

The liquidators report at the time read: “I have established that a payment of £11,232.66 was paid by [PH Social Entertainments Limited] to Bar Public Limited shortly prior to liquidation.

"I deemed this payment to be preferential in nature and therefore requested that the funds be returned to the Company from Bar Public Limited.”

The directors agreed to repay these funds over a period of six months.

The liquidator of Bar Public Limited said that he did not know the title of the company or companies which would take over Gatsby and Picture House Social.

The Yorkshire Post made several attempts to contact Mr O’Hara and Mr Hill for comment but did not receive a response.