James Lumb and Howard Smith from Interpath Advisory were appointed Joint Administrators of XB Realisations Limited – formerly Xbite Limited – on 15 July 2022.
Based in Chesterfield, the Company operated as an online retailer which traded through websites including “365Games”, “Roov”, “Maison and White”, “Pukkr” and “Shop4World”, as well as via various other sales channels. The Company employed 87 members of staff and had turnover of £51.7 million in FY21.
In common with many online businesses, the Company’s turnover levels increased significantly during the COVID-19 pandemic, so the business geared up for further growth, employing additional staff and expanding into new larger leasehold premises. However, the operational and financial pressure of a scaled-up infrastructure, combined with supply chain issues associated with importing from China (including shipping delay sand increased container costs) had an impact on profitability.
With mounting cashflow pressures, the directors explored options for additional investment, including exploring a potential sale of the business. Despite receiving multiple offers, ultimately a solvent sale could not be delivered. The Directors concluded the Company had no prospect of avoiding insolvency and sought to appoint the joint administrators.
Immediately following their appointment, the Joint Administrators completed a sale of the business and certain assets of the Company to an unconnected purchaser which now trades as “Xbite”. All employees transferred to the purchaser as part of the sale.
James Lumb, managing director at Interpath Advisory and joint administrator, said: “We are pleased to have concluded this sale of the business and we wish the purchaser all the very best for the future.”