UK: Beleaguered commercial refrigeration company Capital Cooling has entered administration for an astonishing third time in just over four years.
Sarah Collins and Christopher Pole of Interpath Ltd were appointed joint administrators of Beheren Ltd, which trades as Capital Cooling, on Thursday (February 24). CEO Steve Steadman resigned his position earlier in the week.
Beheren Ltd, a dormant subsidiary company of Capital Cooling’s previous owners, RCapital, had acquired the assets of the business for £4m in a pre-pack deal from the previous administrators in July 2020.
Established in 1996 in Edinburgh, Capital Cooling grew swiftly under founder Alister Mclean from a local refrigeration business to a manufacturer, supplier, installer and maintainer of refrigeration equipment, operating across the UK.
Capital Cooling first went into administration in December 2017 after a number of months of rumoured financial problems and with debts of over £6m. Founder Alister Mclean had stepped back from the day-to-day running of the business six months earlier.
Parts of the company’s business was subsequently acquired from the adminstrators, KPMG, by Sound & Vision 2016, a subsidiary of London-based private equity company Rcapital Partners LLP. It was renamed Capital Cooling Refrigeration Ltd.
“The corporate restructuring will allow Capital Cooling to continue to operate as normal and build a strong and flourishing business for the future,” a company statement said at the time. “It will secure jobs, preserve the company’s brand, provide the business with a far stronger balance sheet and protect the interests of its employees going forward.”
Sadly, this wasn’t to be the case. Despite the appointment of former Viessmann Refrigeration Systems MD Steve Steadman as CEO, Capital Cooling Refrigeration continued to make losses. Then the coronavirus struck, sending Capital Cooling into administration for a second time in July 2020. A day later, the assets of the business were sold to Beheren Ltd.
Now the company has been placed into administration for the third time in a little over four years. Details of its debts have not yet been released. The first year of accounts for the period to 30 June 2021 had yet to be lodged with Companies House.
Capital Cooling in second administration in three years – 7 August 2020
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Capital Cooling leaves Edinburgh – 31 July 2020
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