Moore Stephens administrates indebted night-club chain

23 March 2018 Consultancy.uk

Moore Stephens has been appointed the administrator to the company behind four clubs on the same street in Norwich. The future of Mercy, Rocco's, Flaunt and Lace remains uncertain, after Code Red Promotions called in liquidators, having racked up over £400,000 in debts to the Norwich City Council.

Norwich-bound revelers were greeted with the sobering news that a sizable chunk of the city’s night-club scene now faces closure. Liquidators were called in to Code Red Promotions – which owns the bars Mercy, Flaunt, Lace and Rocco’s restaurant on Prince of Wales Road – at the end of February.

Professional services firm Moore Stephens has since confirmed Jeremy Willmont and Lee Causer have been appointed joint-administrators by the High Court under the Insolvency Act, coupled with a winding up petition presented by Norwich City Council for non-payment of business rates. A statement from the firm said it was assessing the company’s financial position “in order to decide whether the clubs can continue to trade under their supervision”, and would be in discussions with management regarding its future.

Moore Stephens administrates indebted night-club chain

Prince of Wales Road has become infamous nationally for its heavy police presence and high drink-related crime rate in recent years. In 2015, the street was named as the fourth most dangerous drinking spot in the UK, and the reputation of the location means that public reaction to the potential collapse of four clubs synonymous with the Prince of Wales experience has been mixed at best.

While the opinions of some were summarised by an online commenter, “Great club I’m sure it will bounce back,” others speaking to the local press were less forgiving. One said it was the “best news I’ve heard in ages”, with another telling the Eastern Daily Press, “This has to be good news for Prince of Wales Road.

Public cost

The potential cost to the public purse goes beyond damages resulting from disorderly behaviour, however. When Code Red first entered administration, the figure owed to the Council was thought to be “in excess of £200,000,” according to a Moore Stephens spokesperson. Problematically, it has since emerged that the owner of the nightclub group was also behind another company which failed 14 months before – owing the council £220,000.

Norwich City Council has since announced that it will write off Project Zeus’ £220,000 debt. However, it is continuing to work toward recovering the remaining £200,000 owed to it by Code Red. Moore Stephens is yet to release a public statement on the progress of the liquidation, following the revelation.

Documents which emerged in March, originally filed at Companies House, showed Code Red owner Ibrahim Peri had previously been involved with a company called Project Zeus, which went into liquidation in December 2016. His mother Dawn Peri was also listed as a director for both companies – with Code Red Promotions purchasing the assets of Project Zeus during its own liquidation for £23,580 on February 24, 2017. According to a report in January from Project Zeus’ own liquidator Nick Cusack, of Parker Andrews, no funds were ever received for the purchase.

Meanwhile, a third company, Zonebond, also listed Peri as a person with significant control. It likewise went into liquidation, with documents showing it owed £168,822 to HM Revenue and Customs at the time, before its assets were similarly sold back to Peri. In total, the trio of collapses could cost tax-payers over £500,000 via the Norwich City Council and HMRC – meaning that while the practice of “Phoenixing” in this manner remains legal, due to its capacity to allegedly save jobs, it has come in for stringent public criticism in relation to Code Red.

More news on

×

Capgemini provides IT services for BAE Systems Maritime-Submarines

24 April 2019 Consultancy.uk

BAE Systems Maritime-Submarines has confirmed a five-year contract with Capgemini to take over the provision of a spectrum of IT services in the UK. The deal will help BAE Systems Maritime-Submarines reduce the cost of IT from its base in Barrow-in-Furness in Cumbria.

Since the firm’s UK profits were found to have halved in 2018, Capgemini has been working to improve its offering and attract new clients. In the summer, the global IT services consultancy combined a number of its creative wings to form Capgemini Invent, while a deal with Amazon Web Services enabled the firm to improve its cost-saving digital offering to clients looking for IT outsourcing work.

In the last year, Capgemini has subsequently won a series of contracts leveraging its IT delivery services on behalf of a variety of entities. The firm partnered with Statoil to deliver digital innovation across the company, as well as taking a role to innovate the fan experience of the Rugby World Cup 7s tournament, and replacing Atos as the IT services provider of McDonald’s

Capgemini provides IT services for BAE Systems Maritime-Submarines

Now, the firm has continued this surge of new business with the confirmation of a partnership with BAE Systems, which will see Capgemini collaborate on a key defence contract. Capgemini’s five-year contract with BAE Systems Maritime-Submarines will see Capgemini take over the provision of a spectrum of IT services for the BAE wing in the UK, including service orchestration, networking, hosting, end-user computing, DevOps, reporting and analytics, automation, and a digital service desk.

BAE Systems has been looking to improve its bottom line in the UK in recent years, and the move is aimed at transforming its Maritime-Submarines business IT delivery, allowing the company to take advantage of innovative digital technologies, create better user experiences, ensure high service availability, and reduce the cost of IT, from its base in Barrow-in-Furness in Cumbria. Capgemini’s IT solution was selected because of its ability to support the company’s evolving requirements, including the need to further enhance the responsiveness of the IT service, and effectiveness and agility of the delivery model.

Stephen Cole, CIO, BAE Systems Submarines, said, “As we embarked on this critical programme for our Submarines business that will deliver improved agile digital services, world-class service transformation and orchestration capabilities underpinned by very strong references were essential in our selection process. We are confident that Capgemini met these requirements and is the right partner for us. The team really understands where we are trying to get to as a business and its collaborative approach alongside its commitment to developing skills in the local area were paramount to our decision.”

Paul Margetts, Managing Director, UK Business Unit at Capgemini, added, “We are delighted to expand upon our business relationship with BAE Systems. Having worked with the company over the past four years, we have seen the tremendous opportunities for change that this programme presents and are hugely excited to be part of the journey at BAE Systems Maritime-Submarines, to help the company make a step change and satisfy new business requirements. We also look forward to increasing our involvement with the local North West community and Barrow in particular.”