Yorkshire Lavender: return of money to normal creditors deemed "unlikely" by liquidator

Yorkshire Lavender Limited entered liquidation last month, selling its assets to Barnby Holdings Ltd, a company involving two previous directors and shareholders of Yorkshire Lavender, Samuel Goodwill and Emma Waddington.

The sale of Yorkshire Lavender’s main moveable assets, including plant and machinery, stock, vehicles, and Goodwill intellectual property was finalised on Tuesday, August 9 for £68,766.

The company entered liquidation owing over £1m, part of which is owed to local Yorkshire Businesses.

Despite the liquidation, the Terrington site on which Yorkshire Lavender was based has continued to operate.

The letter, which details minutes of a creditors meeting held on Thursday, August 25, shows that Annette Menzies, a liquidator appointed by William Duncan (Business Recovery) said: “Given that HMRC are owed in the region of £150,000 then unless the liquidator is able to realise substantial sums on the land and buildings then a return to ordinary creditors is unlikely.”

The minutes also state that Ms Menzies confirmed there would be a number of difficulties in this regard, as the land on which the buildings are situated is not owned by the company, but by Nigel Goodwill, father of Samuel Goodwill and Emma Waddington, and founder of Yorkshire Lavender.

Ms Menzies noted that the structures are “built on land that is not currently owned by the company therefore if they are to be dismantled they would be worth a fraction of the built / cost value.”

Claire Challoner Walker, whose company Cosy Cottage Soaps is owed £870.14 for a batch of soaps, said: “That money is a lot to a small business like us.

"We try really hard to employ provide employment opportunities to people who may find it difficult to gain employment, our margins are not brilliant but that's almost the point to me, so it's quite a hole to have in our revenue.

Amongst other creditors owed money in the liqudation are Barmby Moor-based Hooting Owl Gin, who are owed £2419.20, and Malton-based Inprint Colour, who are owed £4,508.20.

A spokesperson for William Duncan said: “All consumer creditors should be directed to their own bank or debit/credit card company in the first instance as they are more likely to receive a full refund via that method, all other trade or ordinary creditors who haven’t been in touch with this office should be directed to do so now in order that they are able to complete and return a proof of debt form.”

“We are unable to make any predictions on the likely return to ordinary creditors at the moment as investigations have just commenced.

“However, creditors will be kept informed of progress as part of the liquidation process and in line with statutory reporting requirements.”

Yorkshire Lavender did not respond to requests for comment.

Giving reasoning for the liquidation, a spokesperson for William Duncan added: “The main causes of the insolvency of the business were the shut down of operations during the Covid 19 pandemic, the forced relocation of the distribution side of the business and resulting lack of proper infrastructure and the significant lack of experienced staff to fulfil orders.”