The Blazing Donkey in Ham went bust owing £380k to wedding couples – but had just 62p in bank

Fifty-four couples who booked weddings at The Blazing Donkey in Ham have lost a combined total of £380,000 after the venue went into administration in September with just 62 pence in the bank.

The venue, which was owned by Richard Martin, put a notice on the building informing people of the situation in September.

A report now published by administrators Opus Restructuring LLP shows that money recouped through a sale of the site, expected to net £1.45m will cover the debt owed to Metro Bank of £1.27m.

Staff have claims amounting to £24,549.

HMRC is owed some £40,000 but is unlikely to receive anywhere near this sum.

Unsecured creditors, which include the 54 wedding couples and trade suppliers, are unlikely to see any reimbursement from the sale. A number of couples and suppliers are Thanet based.

Couples are owed amounts ranging from £250 to £17,580. Traders are also owed circa £78k, with another £228k owed in unpaid utilities to EDF.

The Blazing Donkey  had previously been owned by Mr Martin’s parents. He had been involved with the business since 1992 and it became a licensed wedding venue in 1997. He bought the freehold in 2007 and, with wife Sherry, expanded the business to include a garden marquee and glamping site.

In 2022 the company was offered £1m for a 12 month contract to house asylum seekers but this was turned down due to concerns over the impact on business and reputation.

In January this year Sherry was admitted to hospital with a rare and aggressive brain stem cancer following several months of ill health.

The administrators’ report says: “This illness removed both directors from the day to day running of the business and resulted in all non-event operations being ceased with the team remaining focused on delivering the weddings and other events that were booked.

“In addition to the reduced services and lost income deriving from this, the business faced several external challenges including increased food, utilities, employers NIC and other costs as well as a general downturn in the leisure market generally.

“Despite sustained cash injections from the directors, there was insufficient income to cover the increased costs. The position was exacerbated further following the death of Mrs. Martin earlier this year and the resulting impact this had on Mr. Martin and his wellbeing.”

The Blazing Donkey ceased all trade by September 8 and then went into administration.

The dire financial situation showed 62p in one account with others believed to be overdrawn. There was no petty cash at the venue despite a listed £707 float.

Staff were issued with forms for the Redundancy Payments Service.

The administrators add: “Immediately upon appointment, the Joint Administrators and their staff took steps to contact the 54 couples who had future wedding bookings to confirm the Company’s Administration.

“They were advised to speak with their bank and/or credit card provider as appropriate, and were referred to Section 75 of the Consumer Credit Act 1974.

“Individuals who had taken out wedding insurance were also advised to contact their insurance providers in the first instance to seek further advice in claiming any monies paid to the Company prior to the administration.”

Unable to continue the business, or market it as a going concern, the decision was made to sell the property.

Ten parties expressed interest and formal offers of £1.2m and £1.4m were received with sale to the higher offer expected to be complete by the end of the year.