Company changed hands...where do I stand?

gazelle15

My parents had some glazing installed in December. There have been issues with the doors sticking ever since and installers kept coming out to "fix" them.

They got fed up of this and in July sent a letter requesting a refund on the basis that the goods supplied were faulty. The company has been giving them the run around and I have now discovered that they went into administration on 31st Aug and have now been taken over by another company.

They are saying that they have taken over the company but not any outstanding remedial work and that they will come out to look at them but my parents would have to pay for this.

Where do we stand in terms of repair or refund in these circumstances?

unholyangel

Was it a limited company? If so, does the limited company still exist/have they just had a change of directors? If so, they can't disclaim liability - they purchased the company "warts & all".

martinsurrey

unholyangel wrote: »

Was it a limited company? If so, does the limited company still exist/have they just had a change of directors? If so, they can't disclaim liability - they purchased the company "warts & all".

my guess its a pre pack administration, trade and assets sold to new Ltd company, old company left with the junk.

happens all too often in certain industries.

eddddy

You need to find out whether the new owners bought the company from the old owners,

...or whether the new company just bought the old company's assets from the administrators.


Sometimes the the administrators will sell the assets of the failed company - and a new company starts up which looks very similar to the old one.

e.g. Acme Double Glazing Ltd will go into administration and be liquidated - but its buildings, vehicles, stock and other assets sold to another company called Acme Double Glazing UK Ltd.

So the new company has bought the assets of the old company - but not the liabilities.

Your parents claim for faulty double glazing would be a liability (not an asset).

Lomast

unholyangel wrote: »

Was it a limited company? If so, does the limited company still exist/have they just had a change of directors? If so, they can't disclaim liability - they purchased the company "warts & all".

Maybe, it depends on how the business was sold by the Administrators, may not of included the liabilities of the old company especially if it was a pre pack administration

bris

Oldest trick in the book, offer 10 year guarantees then when the complaints start coming in fold the company and start a new one.


All to easy for these directors that know exactly how to play the system.

unholyangel

martinsurrey wrote: »

my guess its a pre pack administration, trade and assets sold to new Ltd company, old company left with the junk.

happens all too often in certain industries.

I would expect them only to buy the "name"/assets if they weren't looking to inherit its liabilities but sometimes they surprise you by just taking over the company itself and OP makes several references to the company being taken over. If they didn't take it over then the original company should still be showing as in administration. While if they're showing as active with a change of directors then its likely they've purchased the company itself.

Lomast wrote: »

Maybe, it depends on how the business was sold by the Administrators, may not of included the liabilities of the old company especially if it was a pre pack administration

If they bought the company itself, they inherit its liabilities. The only way to avoid it is to not buy the company and buy its assets (such as goods, customer base, brand/name).

agrinnall

How did they pay? Hopefully at least some of it was on a credit card which should allow a S75 claim to be made against the card issuer.

theonlywayisup

https://forums.moneysavingexpert.com/discussion/comment/73132925#Comment_73132925

gazelle15

Yes I have posted before theonlywayisup. Not sure what your point is?

We drafted the letter but then found a different registered office address and looking into it discovered that they were filed in administration on 31st August. Hence this post to see if there is any point in sending a letter before action if the company has changed hands.

It is a bit of a mess looking at the various documents they have. The marketing material they were given shows that St Helens glass is a trading name of Penicuik Home Improvements with a company number on the invoice of 06515999. This shows a name change to PCHI Realisations on 1st Sep. The customer service email address relates to a company called ENTU 09237919 and the doors were installed by Job Worth Doing 06516541 which both seem linked

They appear to have been bought by a company called Latium on 1st Sep but still showing as in administration on Companies House

Latium website states:
The Latium Group are delighted to announce the purchase of the Businesses of Entu (UK) PLC which includes the brands: Weatherseal, Penicuik, Zenith, St Helens Glass, St Andrews and Job Worth Doing.

Latium’s CFO, Adrian Kirk, said: “We are delighted to have acquired these excellent brands and all of the employees of Entu. Latium will invest substantial amounts of capital and expertise in order to continue the great service and products that these brands offer to the consumer"

steampowered

Looks like a pre-pack to me, so unfortunately it may not be possible for your parents to get a refund.

Have a look at the administrator's proposal when that is available on Companies House (https://beta.companieshouse.gov.uk/company/06515999/filing-history) ... but I doubt there will be any assets left in the company.