Beloved hospitality company collapses into administration with £3million in debt owed to HMRC

A much-loved hospitality company based in Yorkshire has gone under in another blow to the UK economy.The Potions Cauldron Ltd, the firm behind The Hole In Wand mini golf venues and a line of non-alcoholic beverages, collapsed into administration in April with debts approaching £3million.Documents filed at Companies House reveal the full extent of the financial difficulties that brought down the business.However, the operation has been rescued through a pre-pack administration deal worth £300,000, allowing it to continue trading under different ownership.The total deficit stood at £2,928,104, with creditors including landlords, finance companies, trade suppliers, and HM Revenue and Customs (HMRC) all left out of pocket by the collapse.Despite the collapse, administrator reports paint a picture of a business that had experienced substantial expansion in recent years.The company's workforce had grown to 70 employees spread across 11 locations, with each new venue demanding approximately £350,000 in upfront capital investment.Directors secured this funding from UK lenders by offering personal guarantees as collateral. Financial records show turnover climbed from £1.94million in the year ending March 2023 to £2.38 million the following year, before reaching £3.25 million by March 2025.LATEST DEVELOPMENTSFuller's boss blasts Rachel Reeves for 'interference' as 100s of pubs close amid tax hikesUK construction faces dire cashflow crisis as most firms just EIGHT MONTHS from collapseCentury-old British manufacturer collapses into administration with 170 jobs lost amid soaring costsProfits followed a similar trajectory, rising from £121,000 in 2023 to £144,000 in 2024, then peaking at £266,000 in the most recent financial year.Yet this impressive growth masked deeper problems within the portfolio. A number of locations consistently failed to meet performance targets, with losses at struggling sites consuming the profits generated elsewhere.The Chester branch proved particularly damaging after flooding forced it to shut for three months. An ongoing dispute with insurers meant the company was unable to recover its losses, ultimately costing the business £250,000.Facing mounting pressure, the company began searching for an equity partner in 2025 to inject fresh capital and restructure existing borrowings.Administrators concluded that a pre-pack sale offered the best route to preserving asset value and protecting customers with existing bookings.The rescued business now operates as The Potions Group Limited, with Robin Fry serving as sole director. He is the father of Ben Fry, who co-founded the original company.Stuart Jarman, previously managing director of The Potions Cauldron Ltd, holds a minority stake in the new entity. The Statement of Affairs reveals the scale of money owed to various parties.HMRC is due £142,000 as a secondary preferential creditor, while 43 trade creditors are collectively owed £129,376. The largest portion of debt sits with landlords, finance companies and investors, who are owed a combined £2,237,239. Our Standards: The GB News Editorial Charter