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How Can This Happen?


autowfix
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Hi All

 

Hope some one can explain how can the following happen?

 

A leisure company selling many accessories closes/Bankrupt then sets up again the next day with the same phone number, website, logo in fact as if nothing has happened at all!!!!!?????

 

I am no expert in this field however I was lead to believe you can not do this?

 

This can not be good for the industry or the customers?

 

Let me know your thoughts

 

Thanks all

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Limited company with a trading style means limited liabilites to the value of the share value of the company, which can be as little as £1 per share holder.

 

They disolve the original company and create a new limited company, they then adopt the old trading style (or a name so similar no one notices) - job done.

 

If the directors are banned from holding directorship positions in new companies, they then they just appoint family members as puppet directors, with the original owners still pulling the strings.

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Hi SteveB

 

Thanks for the response, however same Directors!

 

Just seems wrong how they can do this,

 

Thanks

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Hi SteveB

 

Thanks for the response, however same Directors!

 

Just seems wrong how they can do this,

 

Thanks

 

That's how the system works, crooked and very wrong, but the people doing it have no scrupples so don't care.

 

They disolve the company before they can be put in to receiveship by its creditors.

 

If bancruptcy is files then the courts can then ban people from holding directorships, but as above they use puppet directors.

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Hi All

 

Hope some one can explain how can the following happen?

 

A leisure company selling many accessories closes/Bankrupt then sets up again the next day with the same phone number, website, logo in fact as if nothing has happened at all!!!!!?????

 

I am no expert in this field however I was lead to believe you can not do this?

 

This can not be good for the industry or the customers?

 

Let me know your thoughts

 

Thanks all

 

Hi Autowfix. There is absolutely no need to ask who they are,IS THERE? ;) :rolleyes: :ph34r: B)

Life in general can be a journey of chance with some winners and sadly some losers. Your outfit can never be left to chance. A short-while carrying out essential checks can ensure a long-time of happy & safe caravanning for all concerned.
Ignorance can often be bliss but is certainly not an excuse and when continually disregarded they can be totally disastrous for oneself and the innocent parties.

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I See! Looks like a way of recapitalising a company then!

 

Shame as no one realises this when buying off them!


Hi!

 

You may ask who they are!

 

I am not saying, but to point you in the right direction or WAY down the RIVERS you go!

 

:D

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Companies have been doing this for years - it removes all the debt from the original company.

 

In my years in business, I had a rule - No further commercial dealings with the new company - I refused to supply them.

But I was in a minority.

Graham

Unless otherwise stated all posts are my personal opinion 

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I see their emails are now back in full force.

 

I was caught out by Chapter 11 in the US, which is a legal way of absolving your debts over there and doing the same thing. I worked for a UK division and had a share scheme, whereby you could buy shares monthly and at the end of 5 years, you got 50% free.

 

Unfortuantely, Chapter 11 was invoked, and I lost about £3k in 2002. In the US there were a great deal of investors lost much more. The company was Dana, a big automotive supplier.

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I Understand Business struggle and if its innocent and trading goes bad over night I can see why you would have to close a business, but on purpose and then use the same name is immoral and should be stopped in all cases!

 

Any way I am sure it will happen again this year and nothing can be done other than boycott them!

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I don't think a reborn company can use the exact same trading name as the previously dissolved company. They may add the year in the new name ie: Bloggs (2014) Ltd. or add the word 'New'- Bloggs Ltd. or similar.

If Bloggs Ltd. was dissolved then the new company cannot trade using the name Bloggs Ltd. It no longer exists. The only way it can happen is if Bloggs Ltd. went into voluntary liquidation and the owner(s) 'sold' the shares-to whoever-rejigged the directors titles and resumed trading.

It is a legalised way of not paying your business debts and if the company own the premises this dodgy way of doing business is allowed to continue.(unless the landlord/leaseholder is not very astute as well).

I agree with Wisp Man. I would not do business with serial debt dodgers either.

 

Regards.

Col

Proud to be a Patriot and CT Ninja
I get the feeling that beneath your sesquipedalian loquaciousness you're the same kind of fundamentalist intent on winning arguments through Argumentum Verbosium.

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Companies have been doing this for years - it removes all the debt from the original company.

 

In my years in business, I had a rule - No further commercial dealings with the new company - I refused to supply them.

But I was in a minority.

Great point, the same suppliers and wholesalers will give them credit again, because they can't turn down the potential volume.

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Hi to you all following this post.

What it needs is an on-mass attack on the Government Business Secretary and The Office of Fair Trading and anyone and everyone that can call time on this despicable loop-hole in dodgy practices.

The practice laughs in the face of Mr & Mrs Ordinary that fall foul of hard times and loose everything that could have taken years of Blood Sweat & Tears to accumulate.

Life in general can be a journey of chance with some winners and sadly some losers. Your outfit can never be left to chance. A short-while carrying out essential checks can ensure a long-time of happy & safe caravanning for all concerned.
Ignorance can often be bliss but is certainly not an excuse and when continually disregarded they can be totally disastrous for oneself and the innocent parties.

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Another variant is used by some dodgy car sales companies.

 

You buy a dodgy car, but when you try to reject it, or sue to get your money back, you find that the company you bought from owns no assets - and certainly not the building they trade from. So they just go bankrupt if ordered to pay up.

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Great point, the same suppliers and wholesalers will give them credit again, because they can't turn down the potential volume.

Can't or won't? Some of the suppliers, wholesalers are as bad. .....it's a stupid law that allows this practice.

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I don't think a reborn company can use the exact same trading name as the previously dissolved company. They may add the year in the new name ie: Bloggs (2014) Ltd. or add the word 'New'- Bloggs Ltd. or similar.

If Bloggs Ltd. was dissolved then the new company cannot trade using the name Bloggs Ltd. It no longer exists. The only way it can happen is if Bloggs Ltd. went into voluntary liquidation and the owner(s) 'sold' the shares-to whoever-rejigged the directors titles and resumed trading.

It is a legalised way of not paying your business debts and if the company own the premises this dodgy way of doing business is allowed to continue.(unless the landlord/leaseholder is not very astute as well).

I agree with Wisp Man. I would not do business with serial debt dodgers either.

 

Regards.

Col

 

You can use a trading name but you cannot use the same LTD company name.

 

A trading name is anything you want to call your business, the LTD company name is what is registered at Companies House

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From research I did at the time I think this is actually the third or fourth resurrection of this company ( which if it matches the previous outfit is only a £100. 00 company. .....) The monies they were owing were,in the main, to Nat West Bank. .....

 

geoff

Kia Sorento KX-1 CRDI 4WD towing an Elddis Affinity 530

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Surprised they are using the same name because that name is mud.

Isuzu D Max pulling Bailey Unicorn 2 Valencia

Bailey Autograph 740 MH: Isuzu for sale LOL

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GPS.

 

That is what I said; Or at least it is what I meant.

If a Limited company is dissolved/bankrupt then yes you and I agree, it is no more, it is an ex-company. ...................... :ph34r:

 

Regards.

Col

Proud to be a Patriot and CT Ninja
I get the feeling that beneath your sesquipedalian loquaciousness you're the same kind of fundamentalist intent on winning arguments through Argumentum Verbosium.

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Most of these deals are probably done before its announced. Friend does this for a living and they are called 'pre-pack' sales. Very much in fashion at the moment:

http://www. accountingweb. co. uk/article/pre-pack-administration-business-saviour-or-stich/541624

Edited by milkymarsh
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