Hi everyone,
This is a long one so bear with me, hope it comes out clear and hope i am in the right section - this is my query would love opinions/thoughts:
Company 1 set up in 2009 and took over lease of hotel. Director A also runs another business as a sole trader in same county. All well for first year or so, then slowly starts not paying suppliers etc, in June 2012 Director A sets up a new Company (call it company 2) but this time does not go as director himself – his friend and silent partner from the other business is named as director. From June 2012 until December 2012, the company runs this business into the ground basically, staff were rarely paid, suppliers/landlords/revenue etc were not paid at all. In December business was shut down, the employee’s fought for the next 2 months to get these 2 men to put the company into liquidation so that they could claim against the insolvency fund and at least salvage some of their money as they got no wages/holiday/bank holiday/redundancy/notice pay. Now for these months that the new company was set up the first director of Company 1 still ran the business –he wasn’t on payroll and didn’t invoice the company – it was a cash business – he took all cash and to this day we don’t know where it is – approx 700,000 minimum.
So company 2 is liquidated in February 2013 – employees get some money from insolvency fund from liquidators but no one else got paid.
Here is my question, these 2 men – director 1 from company 1 and director 2 from company 2 still run a cash business in the county – it is trading as a sole trader for director 1. This week, they have opened 2 more business – both cash business (shops etc) in the county and are trading – is this allowed can anyone tell me? Surely they owe so much debt to suppliers/employee’s/revenue etc how can they be still allowed to trade in the county and now have 3 businesses bringing in a big sum of cash daily. I will presume that both these new businesses are sole traders (well to be honest i doubt any of them will be declared)
Also worth noting is that director 1 also took over another venture last summer – ran the cash business for 4 months during summer periods and closed – never paid rent/staff/vat etc - i presume this is what they will do for the 2 new business this summer but is there any way they can be stopped?!
This is a long one so bear with me, hope it comes out clear and hope i am in the right section - this is my query would love opinions/thoughts:
Company 1 set up in 2009 and took over lease of hotel. Director A also runs another business as a sole trader in same county. All well for first year or so, then slowly starts not paying suppliers etc, in June 2012 Director A sets up a new Company (call it company 2) but this time does not go as director himself – his friend and silent partner from the other business is named as director. From June 2012 until December 2012, the company runs this business into the ground basically, staff were rarely paid, suppliers/landlords/revenue etc were not paid at all. In December business was shut down, the employee’s fought for the next 2 months to get these 2 men to put the company into liquidation so that they could claim against the insolvency fund and at least salvage some of their money as they got no wages/holiday/bank holiday/redundancy/notice pay. Now for these months that the new company was set up the first director of Company 1 still ran the business –he wasn’t on payroll and didn’t invoice the company – it was a cash business – he took all cash and to this day we don’t know where it is – approx 700,000 minimum.
So company 2 is liquidated in February 2013 – employees get some money from insolvency fund from liquidators but no one else got paid.
Here is my question, these 2 men – director 1 from company 1 and director 2 from company 2 still run a cash business in the county – it is trading as a sole trader for director 1. This week, they have opened 2 more business – both cash business (shops etc) in the county and are trading – is this allowed can anyone tell me? Surely they owe so much debt to suppliers/employee’s/revenue etc how can they be still allowed to trade in the county and now have 3 businesses bringing in a big sum of cash daily. I will presume that both these new businesses are sole traders (well to be honest i doubt any of them will be declared)
Also worth noting is that director 1 also took over another venture last summer – ran the cash business for 4 months during summer periods and closed – never paid rent/staff/vat etc - i presume this is what they will do for the 2 new business this summer but is there any way they can be stopped?!