The Stray Ferret Business Club’s next meeting is a breakfast event on Thursday, October 26 at Banyan in Harrogate from 8am to 10am. 

The Business Club provides monthly opportunities to network, make new connections and hear local success stories. Get your tickets by clicking or tapping here.

Connexions, the family-run bus operator based at Tockwith, is to withdraw its X1 service in two weeks’ time.

The last X1 service, which runs from St James’ Retail Park to Harrogate via Knaresborough High Street and Starbeck, will run on Friday, November 3.

Connexions managing director Craig Temple told the Stray Ferret:

“We do have quite a lot of passengers on that route, but it loses more money during the school holidays than it makes during term-time.

“Our costs have soared – it’s incredibly difficult. Since covid, not many people want to drive buses, so we’ve had to put up wages by 25% over the last two years.

“Fuel costs have risen, insurance has gone up by a third, and concessionary fare reimbursement hasn’t kept up with rising costs. We’re also losing money because of the £2 fare-cap because the government doesn’t cover the costs adequately.”

He added that customers would not be left “high and dry” because the X1 route was serviced by other buses, and said that all the company’s other routes remain unchanged.

Connexions currently operates 37 bus services, including many school buses, on routes around York, Leeds, Tadcaster, Otley, Harrogate and Knaresborough.

CNG liquidator appointed

A liquidator has been appointed to oversee the final chapter in CNG Group’s saga.

The commercial gas supplier was once one of Harrogate’s fastest-growing and most successful businesses, and a sponsorship deal with Harrogate Town AFC even saw the club’s ground renamed the CNG Stadium.

But a surge in wholesale gas prices made it uneconomical for many providers to continue to trade, and CNG collapsed in November 2021 owing £82m, with the loss of all 145 jobs. At the time, it was the 19th energy supplier to fail that year.

The group’s creditors have appointed Timothy Bateson, director of national business advisory company Interpath Ltd, as liquidator.

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Former staff at CNG Group look set to receive £43,200 in claims against the failed Harrogate firm.

CNG, which employed about 145 staff, blamed spiralling wholesale gas and electricity prices for going out of business in 2021.

Administrators Interpath Advisory has published a progress report, which was uploaded on the Companies House website this week, for the period from September 2 last year to March 1.

It said staff — classed as ordinary preferential claimants — claimed £43,200 for arrears of wages up to a maximum of £800 a week, accrued holiday pay and pension benefits.

The report by joint administrators Timothy Bateson and Christopher Pole added:

“We anticipate that ordinary preferential creditors should receive a dividend of 100p in the £.”

Administrators paid £635 an hour

The report also revealed Interpath is being paid £635 an hour for handling the administration. It said:

“We have incurred time costs of £153,269. These represent 241 hours at an average rate of £635 per hour.”

Interpath’s final fee by the time administration is due to end on March 1 next year is expected to be £298,759.

Preferential creditors are expected to be paid in full, the report said, and “it is likely that the unsecured creditors will receive a dividend” although the amount is unknown.

The timing of payments is also unclear.

The report described the company’s primary assets as “inter-company debtor balances and investments in others groups”.

These are expected to generate “significant realisations” but the administrators added:

“The flow of funds between the CNG group of companies is complex and will depend on each company within the group resolving matters which are currently preventing distributions being made to the company.”

Read more:

• 45 former CNG staff in £210,000 tribunal win against Harrogate firm
• CNG building in Harrogate goes back on the market
• Administrators reveal state of Harrogate firm CNG Energy’s finances

Forty-six former members of staff at Harrogate firm CNG have won an employment tribunal against the failed company worth about £210,000.

The ex-colleagues claimed CNG didn’t follow the correct redundancy procedures when the firm went into administration last year.

A tribunal in Leeds agreed with their claim, brought by solicitor Nuala Toner, and awarded them 90 days’ pay as compensation.

However, each claimant’s award was capped at eight weeks and a maximum of £571 a week. It means the total sum awarded to the group as a whole is about £210,000.

Any remaining sum owed can be claimed in the insolvency process, although whether any funds will be left when all creditors are paid remains to be seen.

The compensation will be paid by the government’s Redundancy Payment Service because CNG is in administration.

Read more:

• CNG building in Harrogate goes back on the market
• Administrators reveal state of Harrogate firm CNG’s finances

The claim, heard last month, was not contested by the administrators of CNG.

CNG ceased trading last year due to spiralling wholesale gas and electricity prices.

Nuala Toner

Ms Toner told the Stray Ferret:

“As early as August 2021, draft management accounts showed CNG had significant financial difficulties and by October 2021 it was accepted CNG was no longer sustainable. Despite this no steps were taken to commence consultation until November 2021, by which point any consultation was pointless.

“When mass redundancies are made, consultation must be meaningful and must be undertaken with a view to reducing the number of redundancies or mitigating the effects of the dismissals. By failing to undertake proper consultation in good time, the employees were denied the opportunity to mitigate the effects of the dismissals.”

Former CNG building goes on the market

The Harrogate headquarters of energy firm CNG, which ceased trading lat year, has gone on the market.

Montpellier Property Consultants is advertising the four-storey property on Victoria Avenue.

The air-conditioned building was built in the 1990s and refurbished in 2015. The advertisement says:

“It offers modern high specification office accommodation and benefits from the latest systems and technology.

“The quality of its specification and the very extensive office accommodation it provides makes it unique in the business district.”

Slingsby Gin signs sponsorship deal with Ascot Racecourse

Harrogate firm Slingsby Gin has become the official gin supplier to Ascot Racecourse.

Royal Ascot, which is held in June, is one of the premier events on the British horseracing calendar.

The partnership will generate considerable exposure for the local firm through exclusive branding and activations, branded bars for the season and inclusion in event coverage that is broadcast worldwide.

Slingsby Gin said in a statement:

“We are delighted to add this to our existing long-standing sponsorship with one of the golf world’s most exciting events, the BMW PGA Championship, and we hope that the new Ascot partnership will further strengthen our strong sporting connections.”

JB Gill to appear at Great Yorkshire Show

JB Gill

Pop star turned farmer JB Gill has agreed to appear on the new GYS stage at the Great Yorkshire Show.

He will appear twice on stage on Wednesday, July 13, as part of a chat show style section before meeting fans afterwards.

Former ITV Calendar presenter Christine Talbot will host the GYS Stage.

The Great Yorkshire Show in Harrogate will take place from July 12 to 15.

JB rose to fame as a member of boy band JLS, who had five number one singles, before setting up a farm in the Kent countryside,

Send your business news to contact@thestrayferret.co.uk

The state of CNG Energy’s finances has been revealed after its administrators published its first report into the company.

The Harrogate-based company, which had offices on Victoria Avenue, fell victim to spiralling wholesale gas and electricity prices and went out of business last year.

A report published by Interpath Advisory, the administrators appointed to take charge of the company, has revealed CNG owes £3.6 million to HMRC and other “secondary preferential creditors”.

Although the administration process is still in the early stages, the report says it expects to pay “a dividend” to those creditors.

The report says:

“Based on current estimates, we anticipate that secondary preferential creditors should receive a dividend.

“We have yet to determine the timing and quantum, but we will do so when we have completed the realisation of assets and the payment of associated costs.”

The company also owes more than £4 million to trade creditors and £6 million to consumer creditors.

London-based IT consultancy firm Gentrack UK Ltd is owed £450,759 and is among the highest creditors in the report.

Read more:

• In Depth: Why Harrogate success story CNG ended in collapse
• Harrogate energy firm CNG ceases trading

Meanwhile, the company has also made all but 21 employees redundant. CNG employed around 145 staff in Harrogate.

Staff still working are currently assisting with the transition of customers over to new suppliers.

Company was operating on ‘thin margins’

Administrators also found that the company had been experiencing financial difficulty for some time due to “significant cash flow pressures primarily caused by sharp price increases in wholesale gas prices and the general volatility in the energy market”.

The company was already operating on “thin margins” prior to the covid pandemic and had taken out a secured loan of £35 million from Glencore, a multi-national oil and gas firm.

However, the failure of a number of key customers and spiralling wholesale costs left the company unable to finance itself. The report says:

“In the absence of the financial and operational support of CNG Wholesale and other group entities, the company did not have the financial resources required to operate as a standalone business or bear the £35 million loan that was due to Glencore.

“As a result, the directors and Glencore began to explore ways to facilitate an orderly exit from the market.”

Harrogate energy company CNG became the victim of a global phenomenon this year when it ceased trading after 27 years.

Wholesale energy prices spiralled this year, and the impact was dramatic, with CNG one of more than 20 UK companies exiting the market.

Paul Stanley, chief executive of CNG, told the Stray Ferret the company failed because four of its main customers went out of business within two weeks, leaving it with unpaid bills.

Attempts to raise capital or sell the business were unsuccessful due to continued market volatility and high prices in the energy sector.

The company supplied about 15 to 20 retail energy companies through its wholesale business arm and also has around 50,000 business customers. About 150 jobs were lost.

CNG’s headquarters on Victoria Avenue

Swift collapse

Despite being regarded as a local success story for the majority of its 27 years, CNG’s collapse was swift and unforgiving.

Alarm bells began to ring on October 14 when Mr Stanley sent a letter to customers saying it was exiting the wholesale market. Two weeks later the company entered liquidation.

With Christmas approaching, it couldn’t have come at a worse time for staff.

A series of meetings were held between company bosses and worried employees, who had questions about redundancy pay.

Staff have been paid for November but were not expected to be offered a redundancy settlement until after Christmas through a government scheme.

A source told the Stray Ferret it was a “stressful time to have no income.”

Read more:

• In Depth: Why Harrogate success story CNG ended in collapse
• Harrogate energy firm CNG ceases trading

Administrators

CNG then entered the Supplier of Last Resort process operated by the government’s energy regulator Ofgem.

The SoLR procedure was established by Ofgem as a safety net to ensure that when a company stops supplying energy, affected customers are guaranteed continuity of supply through other companies.

However, businesses that were supplied gas by CNG were warned that their energy bills will be expected to rise.

Interpath Advisory has now been appointed as administrator, and around 30 staff are working to close the company.

CNG was also synonymous with Harrogate Town football club, becoming the first-ever sponsor of their Wetherby Road ground from 2008 until 2020 when it was rebranded the CNG Stadium.

The company was also well-known in Harrogate as a supporter of local charities and community projects.

It has undoubtedly been a tough year for businesses across the Harrogate district as the effects of the pandemic have continued to be felt.

There have been a number of closures over the year. However, 2021 has also seen some businesses buck the trend, with new shops opening in the district.

Here is a look back at some of the notable business closures and launches in the last year.

Debenhams, Harrogate

For generations, the Debenhams building on Parliament Street has been one of the major retail landmarks in Harrogate.

But sadly at the start of 2021, as the country was in the grip of a third lockdown, the retail giant announced the town’s branch would not be reopening.

The site had been a retail unit on Parliament Street for over a century. Before Debenhams, it housed the Buckley’s and Busby’s stores.

The building has stood empty ever since its closure.

However, in December the Stray Ferret revealed that developers have submitted plans to demolish it and build 50 apartments on the site, along with two commercial units.

Aldi, Knaresborough

Knaresborough Aldi

A new Aldi supermarket opened its doors to customers in Knaresborough on January 28.

The 8,000 square metre site was built on Swallowtail Way, near the Manse Farm housing development on York Road, after plans were approved in May 2020.

Solita Food Hall, Harrogate

Solita Food Hall

Harrogate’s first food hall opened its doors in May with an aim to serve up a range of different cuisines under one roof.

Solita Food Hall, on Parliament Street, was located in the former Jamie’s Italian building and was set over two floors, including a rooftop terrace.

Under the Shoot the Bull brand, it housed Rupert’s Coffee House, Rotisserie & Grill, Solita Wagyu Burger, Slice Me Nicely Pizza, Cure & Pour Wines and Solita Fish Bar.

However, it wasn’t around for long, closing after just six months in November.

Tomahawk Steakhouse, which had been planning to move into the empty Bistrot Pierre restaurant on Cheltenham Parade, is now planning to move into the large building.

Cut by Farmison & Co, Ripon

Farmison & Co’s boutique butcher shop, Cut

Cut, online butcher Farmison & Co’s first physical shop, opened at the company’s Bondgate Green head office in Ripon in July.

The boutique butcher’s is aimed at showcasing “the crown jewels” of Yorkshire heritage breed meat and allows customers to select from the online range and collect within an hour of placing an order.

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Fi:k, Harrogate and Knaresborough

Vicky Somerville and Luke Morland of Fi:k outside the new café in Harrogate

A Swedish-inspired coffee shop opened its doors in Harrogate in August with ambitious £780,000 plans to roll out the concept across Yorkshire.

Fi:k has renovated 1 Montpellier Gardens, which used to be the home of furniture business Covet.

In December it opened a café on Knaresborough Market Place.

Hotel Chocolat

Queues at the launch of the new Hotel Chocolat store

Queues formed on James Street for the opening of the new, relocated Hotel Chocolat store. Around 30 people waited for the store to open on October 22, with staff serving hot chocolate to them whilst they waited.

The new store is almost opposite the old one, but is larger with a café that can seat 30 people at the back of the shop. The chocolate chain has seen rapid growth in recent years and the new store has had up to 15 staff in the run up to Christmas — double the number of the previous store.

Crimple, Harrogate

Crimple Food Hall

Harrogate’s huge new £6m food hall in Pannal, which overlooks the Crimple Valley, opened its doors in November.

The 48,000 sq ft building, which is simply called Crimple, includes a butchery counter, an in-house bakery and patisserie, a floristry and a 160-seat restaurant.

Crimple has been owned by Graham Watson since 2013. With a personal investment of £4m for the construction, plus £2m for the fit-out, the business-owner created the town’s latest foodie destination in a bid to showcase all the amazing produce the district has to offer.

Previous visitors to Crimple Valley will remember the former antiques centre at the site. This has been completely knocked down and the food hall and restaurant has been built in its place. The garden centre remains and the existing restaurant and terrace has become an events space.

Fattorini, Harrogate

Harrogate’s oldest independent shop, A. Fattorini the Jeweller announced it will close after 190 years of trading

Thought to be the oldest independent jeweller in Harrogate, A. Fattorini, has been located on Parliament Street since 1884.

The announced closure of the Harrogate institution was marked by a closing down sale, which saw people queuing down the street.

It is set to close on January 8, 2022.

63rd+1st, Harrogate

The Manhattan-style cocktail bar at 63rd+1st

Harrogate’s answer to a Manhattan cocktail bar opened its doors in November, with the launch of 63rd+1st.

Decked out in trendy dark blue and gold, and featuring lots of greenery, the restaurant, lounge and bar on Albert Street is aimed at customers who might just want a nibble and a drink after work or a meal out with friends.

The venue was developed by Hostmore PLC, which also includes TGI Fridays as part of its portfolio.

Harrogate’s branch was the third to open in the UK, behind Surrey in May and Glasgow in September.

53 Bo Grove, Harrogate

Kyrensa Bentley when she opened a pancake shack (left) with a general view of 53 Bo Grove

Bohemian Harrogate cafe, antiques and garden centre 53 Bo Grove, on Grove Road, just off Kings Road, closed in December, after more than two years of business.

The business became a vital hub for residents during the early coronavirus lockdowns by staying open at a time when many supermarkets were struggling for stock.

Owner Kyrensa Bentley attempted to improve business by opening a pancake shack and a farm shop on site.

Ms Bentley, who opened the business in September 2019, told the Stray Ferret she made the decision to close after struggling on a number of fronts, including the difficult location and the impact of the pandemic.

She will continue to operate Bo Grove at Oxford Street, which opened in November 2020.

Staff at the collapsed Harrogate energy firm CNG Group are expected to be formally made redundant on Friday.

A meeting was held this morning between around 100 staff members, CNG management and Interpath, the financial advisory company that is expected to be appointed as administrators tomorrow.

CNG’s chief executive Paul Stanley told the Stray Ferret that the majority of staff will be made redundant once Interpath is appointed.

Around 40 people will continue working to help wind the company down, a process that is expected to take several weeks.

An anonymous source at the meeting told the Stray Ferret that “everyone is very sad” about the end of the company.

Staff have been paid for November but are not expected to be offered a redundancy settlement until after Christmas through a government scheme. The source said it was a “stressful time to have no income.”

Read more:

• CNG employees in ‘horrible situation’ regarding redundancy payouts
• Ofgem appoints company to take on CNG customers
• In Depth: Why Harrogate success story CNG ended in collapse

Mr Stanley, CNG’s CEO, said the company has had regular online meetings with staff since September 14 to discuss the future of the company.

He said:

“At each session, we have had extensive Q&A following the initial presentation.

“As we have been discussing the situation with colleagues since September, many people have thankfully already found new roles, and were eager to understand what the next stage would be and when they might be able to move on.

“We provided this information today so that colleagues can start to make plans and many of them had asked for clarity on when they might be released.

“Colleagues have also been advised about the redundancy process and the likely timescales for payment being made through the redundancy process. As you can imagine, we are all incredibly sad that this has happened to a business that has played such a significant part in the Harrogate community for so many years.”

For the majority of its 27 years, CNG was regarded as a Harrogate success story.

Mr Stanley said the reason CNG failed was that four of its main customers went out of business within two weeks, leaving it with unpaid bills.

Attempts to raise capital or sell the business were not successful due to continued market volatility and high prices in the energy sector.

Employees of the collapsed Harrogate energy firm CNG have described the uncertainty over redundancy pay as a “horrible situation” with Christmas just around the corner.

About 100 staff and chief executive Paul Stanley discussed the insolvency programme at an online meeting yesterday

Two different CNG employees, who asked to remain anonymous, told the Stray Ferret that staff had hoped to receive clarification about redundancy pay but were left disappointed.

They said staff had previously been told they would be paid redundancy by the company but that this was withdrawn. They were then told it would be paid by the government, but at yesterday’s meeting, they were not given answers on when this will be and how much they will receive.

One employee said:

“This is a huge kick in the teeth for those who have stayed loyal to CNG for many years”.

Another employee described the atmosphere of the meeting as “cold”. They added:

“We were plainly made to feel like a nuisance”.

Read more:

• In Depth: Why Harrogate success story CNG ended in collapse
• Ofgem appoints company to take on CNG customers

CNG ceased trading two weeks ago due to spiralling wholesale gas prices but administrators are yet to be appointed.

According to CNG’s annual accounts from October 2020, the company had, at the time, £36.7m in cash reserves.

Questions were put to Mr Stanley at yesterday’s meeting about what had happened to this money. One employee said Mr Stanley “swiftly avoided the question”.

The Stray Ferret approached CNG for a response but we did not receive one at the time of publication.