Pub firm went under owing debts over £600k
THE company that ran one of Plymouth’s best known pub/restaurants left unpaid debts of more than £600,000, including an unpaid Covid loan, when it went bust, it can be revealed.
Morley Arms Ltd appointed liquidators and was wound up voluntarily in September 2021, with the bar and eatery now under new ownership.
Documents filed at Companies House now reveal the business, which ran the Morley Arms in Plymstock, had huge debts and owed large sums to the taxman, Plymouth City Council and to lenders. The statement of affairs, signed by director Chris Wakeham, showed the business had no assets, although the land and buildings were valued at £227,865.
The document revealed an estimated shortfall of £617,813 for creditors. A list of company creditors cites claims adding up to £544,744, including £107,003 owed to HM Revenue and Customs in unpaid VAT, income tax and national insurance contributions.
The company also owed £130,000 to Plymouth construction firm Morley Court Ltd and £29,040 to Plymouth City Council. The firm also faced a claim of £45,000 from electricity and gas supplier Utilita Energy. But most of the debt was being claimed by lenders. This included £74,446 by business credit card firm Capital on Tap, £43,255 from Santander UK Plc, and £45,000 from London-based business financer You Lend.
There is also a claim of £80,000 from Swig Finance Ltd for an outstanding Coronavirus Business Interruption Loan Scheme (CBILS) loan. Such loans are unsecured and are unlikely to be paid back if a firm goes into liquidation. The Government guaranteed 80% of the loan to the lender.
The most recent financial statement by Morley Arms Ltd, for the year to the end of August 2021, revealed it made a net profit of £114,889.
In October, the Morley Arms Facebook page said it had closed briefly to enable new owners to “prepare for our exciting future”. The Morley Bar and Eatery, as it is now called, is currently trading and advertising a Christmas menu on its website.
The pub building and land was put on the market earlier this year with a price tag of at least £2 million.