Who's Responsible?

gr_96

I'm writing on behalf of a family friend, who has come to me with a bit of a tricky situation. Hopefully this is the right forum and hopefully you can advise where they're best to go...

My friend purchased a brand new £17,000 kitchen from Company A in 2016. This came with a 6 year guarantee.

2019 rolls around and parts of the kitchen are falling apart, all the (excuse my kitchen ignorance) laminate-type coverings for the fronts/sides of cupboards have cracked and are peeling away.

In this time, unknown to her Company A have stopped trading. But she discovers Company B who have set up and are the exact same people that were in Company A.

Company B agree to come and take a look to see what has happened. Turn up, sigh a bit and offer their apologies. They also explain they don't work with the manufacturer who supplied this kitchen anymore and tell her she is to resolve the problem herself as they are not Company A.

Who is liable? When I look the company names up on Companies Houses they don't exist. The gentleman she was dealing with appears, however. Under a couple of companies, so maybe Company A/B are subsidiaries of the registered LTD name?

It's a bit confusing really, but hopefully someone can help here. She's just feeling gutted that she's paid £17k on a kitchen that is falling to pieces after 3 years and is now being told to like it, lump it or buy a new one. Someone must be liable, if not all the way to the manufacturer??

TIA.

davidmcn

gr_96 wrote: »

When I look the company names up on Companies Houses they don't exist. The gentleman she was dealing with appears, however. Under a couple of companies, so maybe Company A/B are subsidiaries of the registered LTD name?

Who was her contract with? A limited company? Is that on Companies House?

gr_96

It's confusing when I don't post names... Would it be classed as inappropriate to name companies/people to assist with you guys looking up too or? Is that against thread rules?
(The branding on headed paper/the showroom don't match any of the official names on Companies House see)

davidmcn

gr_96 wrote: »

It's confusing when I don't post names... Would it be classed as inappropriate to name companies/people to assist with you guys looking up too or? Is that against thread rules?
(The branding on headed paper/the showroom don't match any of the official names on Companies House see)

Ignore the "branding", you want to find the legal name of the company (possibly in smallprint rather than on the signs) - is there a Something Limited company name, or even better a company number, on letterheadings or the contract?

gr_96

I've not got them to hand unfortunately, but I will definitely check this out.

If they don't (it's late so I'm trying to get all angles covered) then where does she stand?
I read something about possibly being covered with Section 75, but I've just inquired if she paid debit/credit now.

jonesMUFCforever

I would add she needs to find out with whom the warranty is with?
If it is with the original limited company it is probably worthless unless the kitchen was paid (or partly paid) by a credit card.
It could be that the warranty was insurance based - as long as the company paid the premium she could try to use this avenue to make a claim.

gr_96

Turns out she has not paid any by credit card. That advice has been given for future big purchases, just to give her the added possible protection.

I’ll dig at the paperwork tomorrow and report back!

[Deleted User]

I'm afraid, no-one's liable/responsible. Company A has gone out of business, so there's no redress available there and Company B is a new company and has nothing to do with Company A, regardless of the fact that it's been set up by the same people - this happens all the time and is usually done by Directors to escape debts/responsibilities of their previous company - and it's, sadly, entirely legal.
I can't believe your friend didn't use a credit card to make a purchase of this size - even paying the deposit (assuming it's more than £100) would have given Section 75 protection on the whole £17k. So, no comfort there either.
That just leaves the warranty - if it's been underwritten by an insurance company she should still be able to claim under it, regardless of the company ceasing trading. If not, then as previously mentioned, it won't be worth the paper it's written on.
Have a look at these links:
https://www.citizensadvice.org.uk/consumer/somethings-gone-wrong-with-a-purchase/if-a-company-stops-trading-or-goes-out-of-business/
and:
https://www.citizensadvice.org.uk/consumer/somethings-gone-wrong-with-a-purchase/claim-using-a-warranty-or-guarantee/

unholyangel

AngelicKaty wrote: »

I'm afraid, no-one's liable/responsible. Company A has gone out of business, so there's no redress available there and Company B is a new company and has nothing to do with Company A, regardless of the fact that it's been set up by the same people - this happens all the time and is usually done by Directors to escape debts/responsibilities of their previous company - and it's, sadly, entirely legal.
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Thats all dependent on the company she contracted with being a limited company and being dissolved on companies house. If they weren't a limited company or are still active on companies house then its a different kettle of fish.


OP you said she didnt pay by credit card but haven't said how she did pay. Was a finance agreement involved at all?

gr_96

She said "Unfortunately I paid them the full amount by bank card then builder, plumber, electrician and fitter separately. It's a husband and wife team and I had a feeling that he'd probably done a dodgy deal to admonish himself, thus the bankruptcy!"

The bankruptcy reference is that we've discovered the ex-director (now secretary) is listed on the Nation Individual Insolvency Register...

She also said that when the guy came around recently to see the problems, he also asked if she'd paid by credit card. Implies that he knows the game too!