Administrator鈥檚 report reveals extent of firm鈥檚 debt when it went into administration

Fit-out firm Metro Design Consultants, formerly led by entrepreneur Daniel Taylor, went into administration in April 2011 owing 拢1.2m, an administrator鈥檚 report has revealed.

The report on the firm, by administrator Frost Business Recovery, said it had been bought for 拢35,000 by Accounting Training in May. Metro Design Consultants鈥� name was changed to MDC Realisations; then Accounting Training was changed to Metro Design Consultants on 4 May 2011.

The firm turned over 拢12.6m and made profits of 拢212,923 in 2009 before hitting cashflow problems in February 2011 after the loss of a major client, delays in payment and problems on a project.

The firm owes its creditors about 拢1.2m, including 拢1m to trade and expense creditors.

Jeremy Frost, managing director of Frost Group, said the next stage was to finish the investigations and liquidate or strike off money owed to MDC the firm.

Creditors have raised questions about the price at which the firm was sold. But Frost said much of the value lay in the directors鈥� contacts and work in-hand, which clients might not be willing to transfer to a different company. 鈥淚f I thought I could have got half as much [as the 拢387,000 suggested by one creditor] I would have done it,鈥� he said.

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