Navyblue liquidated with over 100 creditors, liquidators reveal

The liquidators of Navyblue have revealed that there are over 100 creditors of the design company.

Navyblue in liquidation

A week after the agency announced its voluntary liquidation after 17 years in operation, French Duncan has been appointed as provision liquidator.

Annette Menzies, partners for French Duncan Business Recovery, commented: “French Duncan was appointed as provisional liquidator on 9 September 2011. There are, in this case, over 100 creditors plus potential employee claims.”

Mezies added that the company was as yet unaware of the final debt, as it was still ascertaining the figural and that it was also conducting initial investigations into the affairs of the company was unable to comment as to whether all creditors would receive compensation.

“We are currently awaiting a winding up order to be granted by the court and will call a first meeting of creditors once that has been received. Any former director of the company in the three years preceding the liquidation will also be contacted by the Liquidator,” continued Menzies.

As for the offices of Navyblue in Leith, the liquidator has said they were leased and not owned by the company, and that it was also not owned by the Royal Bank of Scotland, which, it has been reported, was involved in the running of the agency for some time.

All creditors will be written to by the liquidator, although it has also given The Drum a number to phone should have any enquiries – 0141 221 2984.

The directors of Navyblue have denied that its liquidation was part of a pre-pack deal, following director Geoff Nicol's inference that the agency could rise again in some form in the future.

Nicol said at the time of announcing the closure: "Despite continued support from our bankers to address current economic and trading pressures, our recent ‘internal’ problems have proved to be too difficult to overcome. Although we have made significant personal commitments and investment recently; on the advice of our accountants, we have regretfully decided that we must put our business into voluntary liquidation.

"We are deeply saddened that after 17 years of exemplary trading, the business will no longer exist as it stands today. However, the core Navyblue strategy and design teams, in both Edinburgh and London, will continue as a team. We are extremely excited at the prospects and opportunities that lie ahead; and would like to reassure our clients of our continued and unwavering support."

Updated:

It has been claimed meanwhile that the agency closed owing over £80,000 to its landlords for the Corn Exchange in Leith.

The building, rented by the agency alongside its gallery, is owned by an owners group that apparently included several former senior staff members, as well as the directors of the agency itself, Douglas Alexander, Geoff Nicol and Bernie Shaw-Binns.

A source close to the group has informed the Drum that the group, with the exception of the Navyblue directors, are now working to find new tenants for the building, while digital agency Storm ID’s lease is unaffected, and they continue to work in the former 1576 office space.

It is understood that prior to the liquidation of Navyblue, the agency was also subletting part of the offices out, a move which was not sanctioned by the owners group.

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