Y3S subsidiary is forced to go into 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 BMB had liabilities of £191,418.92, of which £92,053.14 is owed to HM Revenue & Customs, £50,724.54 to Fortis Insurance Company and £19,020 to Cardiff City Council.

Creditors number 11 in total and include Friends Life, Aegon and Zurich.

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

Barney Drake, group director at Y3S, 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 was 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 adds that the administration came about after one of BMB’s creditors refused to wait for all the others to agree payment terms.