Liquidated company reopened with new ownership and asked me to claim under Section 75

benwade

Thrugelmir said:

benwade said:

 It is the same wedding venue with the same management but owned by a different company so as far as I can see it is not technically paying the same company again?

Personally I would undertake some digging. What actually happened to the previous business? Was it a limited company.  Do they actually own the venue? 

Sounds as if they maybe trying to double pocket your money. Such activity isn't that of a reputable business.

The previous company was a limited company and as far as I’m aware the venue is owned by a separate company which is also in liquidation (liquidators appointed on the same date for both companies). 

Looking up the name of the new company they seem to have some very wealthy directors who were not involved in the now liquidated companies so although the management is currently the same I expect there will be changes to the way it runs going forwards.

penners324

If they've phoenixed the company it sounds like they're rather dodgy business people. I'd be very wary of having a wedding there.

bris

digalumps said:

Since the original company has gone into liquidation and assuming there are no assets there for you to get your money back, your route is via your credit card company.

You should therefore claim under section 75 - there's nothing illegal about that and there's nothing illegal about them telling you to do that. Indeed I would suggest most people on here would also tell you to do that.

Regarding where you then go to have your wedding that is completely up to you - it will be a totally separate contract with a totally new company (even if it is the original company in a new disguise).

You might want, as others have said, to reflect on the fact that they may well go insolvent again

Of course it's illegal, its fraud.
The new company bought the old company with it's liabilities, the ops contract is still in place, nothing changes for them. By trying for a S75 now to pay them again would be fraud.

In order for them to have this arrangement in the first place the new company did a deal with the administrators of the old compay. That would have been a favourable deal for the old company which would have saved it from liquidation. They get all the assets but in return also the liabilities, can you not see why this if wrong?

Thrugelmir

bris said:

digalumps said:

Since the original company has gone into liquidation and assuming there are no assets there for you to get your money back, your route is via your credit card company.

You should therefore claim under section 75 - there's nothing illegal about that and there's nothing illegal about them telling you to do that. Indeed I would suggest most people on here would also tell you to do that.

Regarding where you then go to have your wedding that is completely up to you - it will be a totally separate contract with a totally new company (even if it is the original company in a new disguise).

You might want, as others have said, to reflect on the fact that they may well go insolvent again

Of course it's illegal, its fraud.
The new company bought the old company with it's liabilities, the ops contract is still in place, nothing changes for them. By trying for a S75 now to pay them again would be fraud.

In order for them to have this arrangement in the first place the new company did a deal with the administrators of the old compay. That would have been a favourable deal for the old company which would have saved it from liquidation. They get all the assets but in return also the liabilities, can you not see why this if wrong?

The old trading Company was liquidated, as was insolvent. Phoenix company new directors. Same shareholders possibly, or least financial backers. Property is ringfenced in a totally seperate legal entity. There is no contract with new Company, unless the OP agrees to enter into one. 

benwade

The new company has asked us to enter into a new contract with the new company.  What effect does that have on the situation?

Chino

bris said:

Of course it's illegal, its fraud.

Immoral perhaps, but not illegal.

2shoes

benwade said:

The new company has asked us to enter into a new contract with the new company.  What effect does that have on the situation?

Do the right thing.

Contact you card company and make your claim to them.

I would not touch the new company at all.

I would imagine that  my card company may consider me trying some sort of scam on them ,   after I informed them that i had been told to make a section 75 claim and then make a new contract with the new company.

digalumps

Company A folds - creditors claim their losses on credit card. Not illegal, not fraud.

Company rises from ashes as Company B. May or may not take over Company A assets. Not illegal, not fraud - in fact happens more often than you'd think.

Company B asks previous customers to come to them. Not illegal, not fraud. Hopeful maybe!

Dr_Crypto

It isn't illegal but I'd be very wary of re-booking with any phoenix company. They aren't reliable people and there is no indication of when the lockdown might be ended for entertainment (may even be the winter). Will they be any more resilient this time? 

benwade

We discussed more details with them today and it’s become clearer. The company we booked with was liquidated and sold to a new owner. The previous owner & director is no longer associated with the company.
The new company who bought the venue has taken on the venue with its debts and as a result, the money we are still due to pay is not enough to cover our wedding and they are going to make a loss on it.

As the wedding is now with a new company, new owners and new directors I tend to think that claiming for our wedding at the old company is reasonable so that we can pay the new owners so that they are not making a loss on our wedding?