autowfix Posted January 20, 2014 Share Posted January 20, 2014 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 Quote Link to comment Share on other sites More sharing options...
Guest Posted January 20, 2014 Share Posted January 20, 2014 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. Quote Link to comment Share on other sites More sharing options...
autowfix Posted January 20, 2014 Author Share Posted January 20, 2014 Hi SteveB Thanks for the response, however same Directors! Just seems wrong how they can do this, Thanks Quote Link to comment Share on other sites More sharing options...
Guest Posted January 20, 2014 Share Posted January 20, 2014 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. Quote Link to comment Share on other sites More sharing options...
AWanderingLancastrian Posted January 20, 2014 Share Posted January 20, 2014 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? Quote 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. Link to comment Share on other sites More sharing options...
autowfix Posted January 20, 2014 Author Share Posted January 20, 2014 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! Quote Link to comment Share on other sites More sharing options...
WispMan Posted January 20, 2014 Share Posted January 20, 2014 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. Quote Graham Unless otherwise stated all posts are my personal opinion Link to comment Share on other sites More sharing options...
ian16527 Posted January 20, 2014 Share Posted January 20, 2014 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. Quote Link to comment Share on other sites More sharing options...
autowfix Posted January 20, 2014 Author Share Posted January 20, 2014 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! Quote Link to comment Share on other sites More sharing options...
BadbackCol Posted January 20, 2014 Share Posted January 20, 2014 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 Quote Proud to be a Patriot and CT NinjaI get the feeling that beneath your sesquipedalian loquaciousness you're the same kind of fundamentalist intent on winning arguments through Argumentum Verbosium. Link to comment Share on other sites More sharing options...
Abh1493 Posted January 20, 2014 Share Posted January 20, 2014 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. Quote Link to comment Share on other sites More sharing options...
AWanderingLancastrian Posted January 20, 2014 Share Posted January 20, 2014 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. Quote 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. Link to comment Share on other sites More sharing options...
A11 Posted January 20, 2014 Share Posted January 20, 2014 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. Quote Link to comment Share on other sites More sharing options...
Grampy Posted January 20, 2014 Share Posted January 20, 2014 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. Quote Link to comment Share on other sites More sharing options...
Guest Posted January 20, 2014 Share Posted January 20, 2014 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 Quote Link to comment Share on other sites More sharing options...
shipbroker Posted January 20, 2014 Share Posted January 20, 2014 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 Quote Kia Sorento KX-1 CRDI 4WD towing an Elddis Affinity 530 Link to comment Share on other sites More sharing options...
henrypartridge Posted January 20, 2014 Share Posted January 20, 2014 Surprised they are using the same name because that name is mud. Quote Isuzu D Max pulling Bailey Unicorn 2 Valencia Bailey Autograph 740 MH: Isuzu for sale LOL Link to comment Share on other sites More sharing options...
BadbackCol Posted January 20, 2014 Share Posted January 20, 2014 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. ...................... Regards. Col Quote Proud to be a Patriot and CT NinjaI get the feeling that beneath your sesquipedalian loquaciousness you're the same kind of fundamentalist intent on winning arguments through Argumentum Verbosium. Link to comment Share on other sites More sharing options...
milkymarsh Posted January 21, 2014 Share Posted January 21, 2014 (edited) 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 January 21, 2014 by milkymarsh Quote Link to comment Share on other sites More sharing options...
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