A UK-themed drinks and mini golf brand has collapsed into administration, leaving creditors with claims exceeding £2 million. The Potions Cauldron Ltd offered potion-making experiences, mini golf, and retail and wholesale drinks and licensed products.
Business Background
The company operated 10 sites across northern England and Scotland under names such as The Potions Cauldron, Hole In Wand, The Potions Academy, and The Potions Express. It had been expanding, opening an average of two sites per year, with 11 in total and employing over 70 staff. Based in York, the firm reported £3.25 million in revenue for the year to March 2025 and profits of £266,000.
Reasons for Collapse
According to a new report, the business encountered difficulties due to underperforming locations and the government's recycling charge on glass bottles. Administrators from BTG's London office were appointed on April 10, 2026.
Asher Miller and Stephen Katz, partners at BTG, released a report to creditors detailing the company's state. While the wholesale business and several themed locations were profitable, other sites traded poorly upon opening, dragging down the business. The company also faced operational issues and external market impacts in 2025, including a flood at the Hole In Wand site in Chester in January 2025 and the government's recycling tax on glass bottles. Local policy changes reduced footfall in York and Blackpool locations. The increase in Employer's National Insurance contributions was also cited.
Failed Rescue Attempts
The company was unable to find a new equity partner in 2025, and investment for a restructure was not forthcoming. In 2026, the business was referred to administrators. Despite some strong underlying elements, the company could not pay its creditors. A marketing push to find lenders for a sale was initiated.
Sale and Creditors
A pre-packaged sale out of administration took place in April 2026, with The Potions Cauldron Ltd's assets sold to The Potions Group Ltd for £300,000. The sole director of the new company is Robin Fry, father of co-founder Ben Fry. Stuart Jarman, former managing director, is a minority shareholder.
Sites in York, Leeds, Chester, Blackpool, and Seaham were sold, while the Edinburgh store closed, making four employees redundant. The remaining 72 staff transferred to the new owners.
Administrators reported a surplus of £47,963 available to preferential creditors, less £2,932 owed to staff. First-ranking secured creditor Nucleus, owed £164,000, will receive £50,000. Other secured creditors are expected to get nothing. HMRC, owed £142,000 as a secondary preferential creditor, is unlikely to see payment. Unsecured creditors have claims totaling about £2.24 million, but the report anticipates insufficient realisations for any dividend.
