CREDITORS of a company which collapsed after fire wrecked a Sandbanks cafe nearly seven years ago have yet to see any money.
But liquidators for Lucy Enterprises, which ran Cafe Shore on Banks Road, are still hopeful that there will eventually be a payout to some of those who were left out of pocket.
Cafe Shore was wrecked by an electrical fire in August 2014 and its operator, Lucy Enterprises, went into administration shortly afterwards, owing an estimated £451,000.
An insurance claim over the fire was rejected and liquidators later reported that £164,000 had been borrowed from the business by its own directors.
Benjamin Brafman, who was found to have drawn £101,604 from a directors’ loan account, was subsequently disqualified as a company director over his actions while acting for the company.
His disqualification, for a period of four years and six months, is due to end on August 20 this year.
His mother, Julia Brafman, had drawn £63,159, liquidators said.
Liquidator Simon Renshaw of AABRS has previously reported that he had instructed law firm Coffin Mew over the denied insurance claim and the directors’ loan accounts he found to be overdrawn.
In his latest update on the liquidation, he said he was “continuing to liaise with Coffin Mew LLP and other relevant parties regarding the potential rights of action identified”.
Mr Renshaw wrote: “It is anticipated that the work of the liquidator and his staff have undertaken to date will bring a financial benefit to creditors.
“This may be a distribution to secured creditors of the company only,” he said.
But he added that but it was possible there could be money to unsecured creditors.
“I continue to liaise with the solicitors and the litigation funders but at present, I am unable to disclose any further information as to do so may jeopardise potential recoveries,” he said.
“I will, however, provide creditor with a more substantive update in my next progress report where it is appropriate to do so,” he added.
Liquidators received claims totalling £355,337 from 19 creditors of Lucy Enterprises. There are believed to be 21 more creditors owed an estimated £92,056, according to the original statement of affairs submitted by the directors of Lucy Enterprises.
A previous company which ran Cafe Shore, called Cafe Shore Limited, also had Julia Brafman as a director. It was liquidated in March 2013 with debts of £404,000.
Its assets were sold to Lucy Enterprises for £25,000, of which only £6,167 was received, according to a previous report.
The cafe premises was subsequently taken over by Rick Stein at Sandbanks, which has no connection with the business.
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