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Creditors claim £1.8m from liquidated firm

Date Added: 13/08/2013  

Administrators of Nature's World in the north-east of England have admitted they are not sure how creditors of the firm are going to get their money back.

Those owed money by the company have put in claims for a total of £1.8 million, but the administrators of the organisation have revealed they may not get any of the money.

According to a report by the Gazette, the charity stopped trading over the Christmas period last year after attempts from the directors to find a buyer for the firm were unsuccessful.

An update report from the administrators has now revealed that when they first took control of the finances of the company they believed insufficient funds would be realised to enable a dividend to be paid to unsecured creditors.

It has now been confirmed that this is the case and the creditors that are still owed money by Nature's World are not likely to get their money back.

"The administrators now confirm that there will be insufficient funds to enable a dividend to be paid to creditors from realisations generally," a statement released by the administrators of the firm said.

Claims of £1,828,490 have been received to date, but it was pointed out by the administrators that "it is not anticipated that any distribution will be available to the unsecured creditors".

Nature's World, which was set up more than 20 years ago in Middlesbrough, had 900 members who had paid for 12 months' unlimited access to the site, which has now been given back to Middlesbrough Council.

A "general reduction in grant funding availability experienced more widely by other charities and not-for-profit organisations" was blamed by the administrators for the failure of the charity, which had also experienced a drop in the number of visitors.

Many charities have been hit hard by the fallout of the recession and one to recently go out of business was the Joshua Foundation, which announced in June that it was closing with immediate effect.

"It is with sadness that we announce that with immediate effect the charity is closing," the Joshua Foundation reported on its Twitter account.

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Posted by Julie Cutts

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