Y3S Group subsidiary in administration

Y3S Group has placed one of its subsidiaries, BMB Financial Limited, into administration, leaving behind liabilities of £191,418.

A statement of affairs report filed on Companies House shows that BMB had liabilities of £191,418.92, of which £92,053.14 is owed to HM Revenue & Customs, £50,724.54  is owed to Fortis Insurance Company and £19,020 to Cardiff City Council.

Other creditors include Friends Life, Aegon and Zurich, with eleven creditors in total.

In September, Cardiff-based Y3S closed its life insurance business, resulting in a number of redundancies.

Barney Drake, group director at Y3S Group, says: “Our largest insurance provider changed commission parameters and capped our trade levels in early 2011, forcing immediate internal changes.

“Organisational restructuring of both costs and income sources were unable to regenerate sufficient profits under the restrictive conditions.

“Despite BMB’s offering and willingness to meet all liabilities, the actions of a minority creditor forced the eventual liquidation.”

Drake says the administration came about after one of BMB’s creditors would not wait for all of the other creditors to agree payment terms.