GOT Procurement Services owed creditors more than £300,000

Aberdeen supply chain company GOT Procurement Services owed more than £300,000 when it folded earlier this year.

Joint administrators said the company’s unsecured creditors were unlikely to receive a payout based on estimates made at the start of June.

They said GOT Procurement Services had failed largely due to the oil and gas sector downturn and the “relatively young age of the company”.

Brian Milne and Linda Barr, of French Duncan Restructuring and Debt Advisory, were appointed joint administrators on May 3, less than two years after the firm was set up.

They said GOT Procurement Services was weighed down by hefty start-up costs, to the extent that it was forced to downsize and reduce its headcount shortly after its formation in mid-2015.

The company made a loss every month until December 2015.

Administrators said the business “struggled on” until August 2016, at which point a number of major customers withdraw their contracts because their “internal policies” prevented them from dealing with companies less than two years old.

The decision to wind down the business was made after management failed to secure additional funds from lenders.

GOT Procurement Services had about five employees on its books when it went under.

Trade creditors were due £212,887 of the £310,333 owed to unsecured creditors.

Administrators said sales of the company’s stock at auction had raised just over £17,500.

Businessman Warren Anderson launched the firm in July 2015, less than two weeks after an earlier venture – the similarly named GOT (Gas and Oil Technology) – hit the buffers.

GOT ran into trouble after overspending on equipment and premises before the oil price rout struck.

About 20 people were put out of work when administrators from KPMG were called in to dissolve that business in July 2015.

GOT owed creditors more than £5million when it hit the wall.

But less than a fortnight later, Mr Anderson created GOT Procurement Services, which agreed to buy the business and assets of the defunct company from administrators.

Earlier this year, Mr Anderson was made bankrupt and barred from being a company director for 12 months.

KPMG said in February that it was taking legal action to recover the balance of an outstanding director’s loan Mr Anderson took out before GOT collapsed.