Xanadu Uk Retail Limited (Blue Moon)

Investment Requests for Acquisition of Uk Market Leading Wholesale Lingerie Business

Overview
Funds raised
£65,760
Final AER
18.43%
Loan Term
60
Completed:
10/04/2017
About the Business
Company Name: XANADU UK RETAIL LIMITED (BLUE MOON) Company Number: 08155704
Business Type: 5142 Wholesale of clothing and footwear Years Trading: More than 10 years
Business Location: Poole
About the Risk
Risk Rating: C

Default rate

14.1%

Bad debt rate

5.04%

About the Security
Security Offered:
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Personal Guarantee - PG from Ms Sinnappoo
Est. Equity: £0.00

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Personal Guarantee - PG from Ms Subramaniam
Est. Equity: £0.00

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3rd Charge on Residential Property - Third priority legal charge over Ms Subramaniam's residential property
Est. Equity: £75000.00

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All Assets Debenture - Fixed and floating charge over the applicant company
Est. Equity: £3000.00

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All Assets Debenture - Fixed and floating charge over the operating company
Est. Equity: £3000.00

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Cross Corporate guarantee - CCG from operating company to applicant company
Est. Equity: £0.00

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Cross Corporate guarantee - CCG from applicant company to operating company
Est. Equity: £0.00

Important Files
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Who are we?

This application has been relisted due to a material change in the security offered. Lenders who initially considered lending are advised to re-review the new security position. This loan has benefited from a starting rate interest rate reduction due to the security offered.

The owners of Xanadu UK Retail Limited are seeking £200,000 to purchase Blue Moon Lingerie Limited.

Blue Moon offer the best quality wholesale Lingerie products throughout the UK. Offering stylish and quality products to retailers up and down the country.

Xanadu Boutique the acquiring company have already built a successful retail format and have recently established their trade business, which is going strong.

READ MORE...

Details

Who are we?

This application has been relisted due to a material change in the security offered. Lenders who initially considered lending are advised to re-review the new security position. This loan has benefited from a starting rate interest rate reduction due to the security offered.

The owners of Xanadu UK Retail Limited are seeking £200,000 to purchase Blue Moon Lingerie Limited.

Blue Moon offer the best quality wholesale Lingerie products throughout the UK. Offering stylish and quality products to retailers up and down the country.

Xanadu Boutique the acquiring company have already built a successful retail format and have recently established their trade business, which is going strong.

READ MORE...

The owners of Xanadu Boutique are looking for £200,000 to faciliate the purchase of Blue Moon Lingerie Limited in order to grow their existing business with this acquisition.

Blue Moon is one of the main competitors for Xanadu Trade, but has been established far longer than Xanadu trade and is also a supplier to their core business Xanadu UK Retail.

On purchasing Blue Moon the business will receive £23k in bank, £100k stock, debtors £28k. Office equipment, warehouse equipment £18k. The premises have approx. 200 sq meters of warehouse space.

Blue moon has been a constantly profitable business with a positive net worth. Xanadu Retail continues to grow and remain profitable year on year. As well as the new entity Xanadu Trade which shows positive signs making a small profit year to date.

Loan Offers
Business Profile

What is the loan for?

The owners of Xanadu Boutique are looking for £200,000 to faciliate the purchase of Blue Moon Lingerie Limited in order to grow their existing business with this acquisition.

Blue Moon is one of the main competitors for Xanadu Trade, but has been established far longer than Xanadu trade and is also a supplier to their core business Xanadu UK Retail.

On purchasing Blue Moon the business will receive £23k in bank, £100k stock, debtors £28k. Office equipment, warehouse equipment £18k. The premises have approx. 200 sq meters of warehouse space.

Blue moon has been a constantly profitable business with a positive net worth. Xanadu Retail continues to grow and remain profitable year on year. As well as the new entity Xanadu Trade which shows positive signs making a small profit year to date.

Why consider investing?

Blue Moon has been trading successfully since 2004 and consistently profitable. The owners of competitor Xanadu Trade and retail are keen to improve on this already successful business using their current successful retail and trade businesses to grow the group further.

ReBS Disclosure

Lenders are reminded that the figures presented in the financials tab are for the target company, Blue Moon Lingerie Limited. The borrower business who will receive the funds is Xanadu UK Retail Limited (08155704). This is a limited entity incorporated on 25 July 2012 with 4 years trading history.

ReBS Disclosure

A business plan has been provided by the broker and has been attached to the application for lenders to download.

Lenders should be aware that the broker has stressed that this business plan was compiled when the purchase was scheduled to be undertaken by a holding company, rather than the current purchasing company Xanadu UK Retail Limited.

Furthermore, our underwriting team have not reviewed the business plan, so can offer no opinion as to the accuracy of the figures contained within. It is included so that prospective lenders have access to the forecasts and budgeted figures provided by the client.

Security

This loan will be secured by way of a Personal Guarantee, a property charge, debentures and cross corporate guarantees.

Personal Guarantees will be provided by each of the Xanadu Boutique directors, Ms Subathra Subramaniam and Ms Yuvayojoni Sinnappoo.

In addition, a third priority legal charge will be provided over Ms Subramaniam's residential property. This property has an estimated value of £625,000, which was provided by the introductory broker. Online estimates place the property value at £597,000 and an independent valuation conducted by a chartered surveyor in September 2015 estimated the value at £575,000. The broker has disclosed a mortgage over the property with £154,000 outstanding and a second charge in favour of a commercial lender to secure a business loan with roughly £400,000 total outstanding. This leaves the remaining equity which our third ranking property charge will cover. In order to protect the equity position, an agreement has been reached with the second charge holder to limit further borrowing on the second charge during the life of our loan. A letter has been provided by the applicant director undertaking not to apply for further borrowing on the second charge during the life of our loan, and an agreement between ReBS and the second charge holder imposing a duty upon the charge holder to notify us of any application for additional finance will be put in place prior to completion.

Debentures have been offered over the following companies: A first priority debenture over the applicant company, Xanadu UK Retail Limited which will create a fixed and floating charge over all assets. A second priority debenture over the other Xanadu group company, Xanadu Trade Services will create a fixed and floating charge over all assets of this company. A second priority debenture will be taken over the newly acquired Blue Moon Lingerie Limited and create a fixed and floating charge covering all assets of the business.

To complete the security offered, a cross-corporate guarantee will be provided by Xanadu UK Retail, Xanadu Trade Services and Blue Moon Lingerie (once acquired).

Recovery News
This loan is behind with its repayment schedule and so microloan trading has been suspended while we work to help the business recover its repayment form. Please see the Loan Updates tab.
Recovery News
This loan may be behind with its repayment schedule and so microloan trading has been suspended while we work to help the business recover its repayment form. Please see the Loan Updates tab for recent updates.
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