I got sent this today:
If you can’t read the text, you should be able to click on the image to enlarge it. Anyway, the point that was made to me in the accompanying email was that a) it surely isn’t fair that companies should still be able to get away with not paying their suppliers and their tax bill, which in this case it was rumored that the tax bill was rather large, and b) why do suppliers still continue to supply these companies with their products even though they took them for thousands?
They guy who sent me this has a point. Surely by now there should be some major penalties for people who manage to avoid owed money by using clever loop-hole tactics.
The more pressing point he makes to me is that suppliers really need to b avoiding doing business with people like this. They have gone bust for a reason, why give them a second chance? They enter the industry probably only to do the same thing again, go bust. And doesn’t it tarnish the reputation of the suppliers themselves that they would deal with less-than-honest people and businesses?
I take his point. The industry could do itself a favor by freezing out these companies who tax dodge and avoid paying their suppliers. I know we all have strong opinions on this.
Would guess it all depends on the reasons for the firm going bust, i know companies that are serial offenders and would never deal with them yet I also have clients that have gone bust through no fault of there own ie being knocked, partner running off with the bank account etc etc. The problem is its a tough market out there and if you are knocked by a client you want to try and get some of that money back and the easiest way of doing that is to continue to deal with them on a pro forma basis,… Read more »
Well done for exposing was is legal theft . these guys rob others to fininance there millionaire lifestyles living in big houses and driving over the top cars .
if they are running a cash rich company rewarding oneself for success is great but robbing others to do it is despicable it amazes me these guys get away with it.
companies who keep supplying companies who are bust or in a cva do so in the hope of recovering the debt and also pure greed they deserve everything they get when the company pops permanently
This particular company in this article have been continuously loosing money year on year according to their accounts submitted to Companies House and it has just been a matter of time before they eventually went bust. However this was probably down to their suicidal approach to pricing jobs often selling well below market value and thus forcing down the prices in the local area. This then has a knock on effect to other fabricators who are trying to sell at a fair price (so both the fabricator and installer can make something from the job) however if the other fabricators… Read more »
why do the general public buy off these types of businesses are they totally devoid of common sense.?
From what I have seen the integrity of a company seems to make no difference You think they would just look at companies house to see how many similar names there are or if the business is in a CVA. which seems to be a convinient way of offloading massive amounts of debt
I have worked for a company (not in the double glazing industry) that phoenixed as the company they did sub contracting work for went into administration owing them over £30k. They had a good business but could not survive such a huge loss. They ensured that all monies were paid to all their suppliers but could not pay their tax bill, by phoenixing they were able to keep their employees on which would not have been the case if they had completely folded. The last company (double glazing) I worked for phoenixed owing thousands to suppliers large and small, looking… Read more »
how many window companys are actually not trading solvently. i know of at least 3 where if they had to pay all their credit accounts they wouldnt be able to do it, in fact talking to one of my suppliers he has withdrawn credit from a company and said if you want anything pal pay cash. they ditched him and went to another roofline supply company, would they be so quick to do business if they knew he owed over £500 k to other companies and uses every excuse under the sun to pay late , i ran a credit… Read more »
In answer to the question “why do the general public buy off these types of businesses, are they totally devoid of common sense?” – regrettably it is simply too much trouble for most people to do a simple background check on potential suppliers (even though I recommend this course of action to ALL my prospects). It couldn’t be much simpler or more straightforward than to log on to Companies House and spend a couple of pounds downloading the financials of any prospective supplier, especially when they are potentially going to be spending thousands of pounds on their project. Unfortunately, all… Read more »
The new Company has done it again! Less than 2 years after shelving over £600,000 of debt, they have gone again and likely re-formed, still continuing to trade under the umbrella of ‘World Group’ even though this will now be the 3rd different Ltd company trading as World Group. They tell all their suppliers they are World Group, all their customers they have been around over 30 Years and don’t change any logos, vans ect.. The Directors have had the replacement company set up in the background and recently submitted Accounts for a Dormant Company (So they get another 2… Read more »
This guy has cost the you and me (tax payers) another £219,237.00 in the short time his new company has been trading. Along with a few suppliers that continued to supply this Phoenixed company after being stung once: Profile supplier £22K (the same supplier was stung last time too) Glass Supplier £41K (the same supplier was stung for over £60K last time) Lock Supplier £9K (the same supplier was stung last time too) In total this company has left a shortfall to its suppliers and HMRC of £563671.00 (over half a million £) this is less than 2 years after… Read more »