Plymouth’s Prime Cafe Bar closed unexpectedly, leaving over £150,000 in debts unpaid, affecting staff and suppliers.
Liquidators took over in December 2023. Now, the company is being dissolved. A report shows no money is available to pay off any debts.
When the cafe closed, it had catering equipment worth £30,610. However, the landlord took back the premises due to unpaid rent. They were owed £25,000 and reclaimed the property in October 2023.
The directors contributed £6,000 to help with liquidation costs. A report on their conduct was sent to the Insolvency Service, as required by law.
Staff claims for unpaid wages and holiday pay totaled about £1,671. They were assisted in claiming from the Government’s Redundancy Payments Office.
HM Revenue and Customs was owed £86,971 but did not submit a claim. There was no money to pay them anyway. Unsecured creditor claims were estimated at £91,240, but the liquidators found no funds to cover these.
Claimants included local businesses like Devon Coffee Company and Diamond Disposables. They sought a total of £4,675.
Prime Cafe Bar was known for its fresh dishes since 2013. Customers were shocked when it didn’t open on October 9. When visited, the cafe was locked and empty.
Notices on the window indicated the landlord had secured the premises. Attempts to contact the cafe went unanswered.
In a letter to customers, directors Hannah and James Burke expressed their sadness over the closure. They mentioned trying to find a solution but were unable to do so.
They described the situation as heartbreaking, noting the hard work and community support over the years. They acknowledged the negative impact of the closure on many.
Prime Cafe was popular for its breakfast and lunch, open daily from 8:30 am to 6 pm. Its menu featured dishes like Lahmacun Turkish pizza and spaghetti puttanesca.
The cafe was incorporated in 2016, with its last accounts showing a loss of over £37,000. It employed 11 people before closing.