Smoke and Mirrors
The original company is no longer in business. A company with a similar name has been formed out of the ashes under the ultimate ownership of Ateliers de France, whilst creditors and clients of the original business have been deserted.
Cornflake Ltd (company number 06624584) entered Administration on 17 April 2026. Immediately thereafter the Administrator, Bretts Business Recovery, sold, by prior arrangement (in what is known as a “pre-packaged sale”), the IP, office furniture, etc, to a company called ADF Acquisition Co 1 Limited (“ADFA”, company number 17111369), which had been incorporated on 23 March 2026 explicitly for this purpose and whose shares are held indirectly by Groupe Ateliers de France (“GADF”). Employee contracts were transitioned simultaneously. ADFA appointed to its Board the MD of the original Cornflake entity (now a shell), and the Chief Administrative and Financial Officer at GADF, and then deftly changed its name on 21 April 2026 to Cornflake Group Ltd (“CGL”).
The above explanation contextualises the press statements made by GADF that it had acquired Cornflake. It did not. It had acquired (for a comparatively small consideration paid to Cornflake) selected assets out of that ailing company and placed them, along with Cornflake’s employees, within a new company with a remarkably similar name, Cornflake Group Ltd. GADF’s acquisition left various financial liabilities (and customer contracts – see below) in the original company for the Administrators to address as that entity inevitably transitions in due course to one in Liquidation.
Customer contracts that GADF and CGL evidently did not want, regardless of their significance to the clients and the impact on the properties / projects at which the automation systems contracted to Cornflake to develop were being implemented, were simply left behind in the original company, which now had no assets, resources or personnel, and so these incomplete projects were, in all respects, abandoned. No warning of this action was provided to at least one such client whose repeated attempts, both personally and via the main contractor, to reach the Cornflake project team working on the contract in question were studiously ignored. The now ex-client was simply provided with an electronic copy of the project file in its incomplete and un-commissioned state via the Administrators. Even a message sent to the director of the new company asking if it would take on the completion of the virtually finished project went unanswered. Yet, the relationship between this client and Cornflake’s team had always been cordial, collaborative and harmonious, with all Cornflake’s invoices paid promptly.
The MD of the original company, and now a director at the new “Cornflake” entity, is reported as stating that what has taken place “marks an important step forward for Cornflake…”. That statement is at odds with the corporate reality: Cornflake Ltd has ceased trading, is now in administration (as reported on the file at Companies House) and will eventually go into liquidation. Groupe Ateliers de France has simultaneously purchased some of Cornflake’s assets and parachuted them into a newco with a name which, to most observers, is much the same: “Cornflake Group” as opposed to “Cornflake”, thus giving the impression that it is business as usual, when what has really happened is that a variety of creditors will be left with unpaid debts and some longstanding and loyal customers now face serious project-related disruption (AV companies do not want to take on the works of others).
In sum, this is not, as is being trumpeted, an acquisition of a successful business but the cherry-picking of assets from within a company, Cornflake, that was presumably in serious financial trouble and has now been left in the shadows to be quietly buried. Future customers of the successor entity, Cornflake Group Ltd, will want to take note of the fact that, if the director and team that have moved across from the now defunct company to the new one are willing to turn their backs on clients and simply cut them loose, without even offering transitional assistance on equitable commercial terms, they are just as likely to do it again should the new company itself suffer the same fate. Once bitten, twice shy.
28 April 2026
Unprompted review