Barking's Capital Karts goes into administration but insists 'it is business as usual'
PUBLISHED: 17:00 23 December 2019
Barking's Capital Karts has appointed administrators after the tax man petitioned the High Court to try and wind up the company.
The hearing was scheduled for November 29 according to official records. By winding up a company Revenue & Customs (HMRC) can force it to sell its assets to pay off debts - though the petition against the go karting company has now been suspended indefinitely.
Capital Karts appointed administrators on December 4. While it's in administration, it can't be forced to sell off its assets by people it owes money.
Two "insolvency practitioners" from the firm David Rubin & Partners have been hired to protect the company through the process, which aims to pay back money owed as fully as possible.
Capital Karts in Rippleside Commercial Park claims to be the largest indoor go-karting track in the UK, having a 1050m long track with 20 corners. Its website advertises races of up to 25 drivers. Prices start at £27.50 per person.
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The company's managing director Matt Holyfield didn't comment on Capital Karts going into administration when asked in an email, instead he said the company is going to "have a greater focus on our charitable activities". He didn't respond to emails asking why it was necessary to go into administration to achieve that or why HMRC had petitioned to liquidate the company.
"Trading has been strong this year and we continue to grow in revenue, footfall and we have recruited more local staff than ever before," he said in a written statement to the Post.
"It is business as usual and we will keep providing our class leading activity to the public and corporates, but moving forwards we will have a greater focus on our charitable activities.
"We will be developing more partnerships with Barking & Dagenham based charities and institutions, enabling an even greater number of local individuals and groups to enjoy our venue.
"To reiterate there is no impact on current or future trading, the only change is our increased focus on our charitable activities."
Despite the director's confidence, it is currently not clear what the future of the company will be.
HMRC declined to comment for this story. A spokeswoman for the agency said it does not give details about individual cases.