Company ceased trading..what should I do?

teachergirl · 18 September 2019 at 10:05AM

Hi there. I am just looking for some advice. In April I paid £1224.00(by BACCS) deposit to a plumbing and heating company to do some work on a house we own. This was a company that my husbands family had used for more than 50 years and indeed we had used them 5 or 6 times in the past few years. They were a small family company. On the day they were due to start work they phoned our tenants and said that due to family illness they would be starting a week later. The following week they also failed to show and were not answering their phones. A notice went on the door saying they had ceased trading and inquiries should be given to the accountants next door. We wrote to the accountants claiming our interest. We had an e-mail from them very shortly after saying that by the time the bank had been paid there would be nothing left for us but no actual figures.
I have checked constantly on the Government website and there is no sign saying they have gone into liquidation or been dissolved although there are also no signs of them continuing to trade. I know there is probably no chance of me getting my money back but at the same time if there is anything more I should do then I want to do it. The company was a limited company, if that helps with your answers. The only other thing is we live 200 miles away so popping in is not an option.
I don't really know enough about how insolvency or whatever works to know if I have done everything I should

davidmcn · 18 September 2019 at 10:33AM

I would presume the info you had from their accountants was probably accurate. If they're no longer trading then it's unlikely there are going to be sufficient assets to make a claim worthwhile pursuing.

teachergirl · 18 September 2019 at 11:33AM

Hi Davidmcn Thank you for your reply. I guessed that but what I wondered was, should we not get some kind of formal letter saying what had been left and where it went? The accountants were working for the company and their interests and not ours. Also why is there nothing showing on the companies register? Again I realise this may be normal and I just don't know enough about these things.

Castle · 18 September 2019 at 11:35AM

teachergirl wrote: »

I have checked constantly on the Government website and there is no sign saying they have gone into liquidation or been dissolved although there are also no signs of them continuing to trade.

Does it say "in administration"?

davidmcn · 18 September 2019 at 12:04PM

teachergirl wrote: »

Hi Davidmcn Thank you for your reply. I guessed that but what I wondered was, should we not get some kind of formal letter saying what had been left and where it went? The accountants were working for the company and their interests and not ours. Also why is there nothing showing on the companies register? Again I realise this may be normal and I just don't know enough about these things.

Someone has to actually instigate insolvency proceedings in order for any liquidation etc to happen. If that happens then yes the insolvency practitioner would then have to report the assets/debts etc to everyone who has made a claim. If nothing happens then eventually the company will probably be struck off the companies register due to not submitting accounts or annual returns.

teachergirl · 18 September 2019 at 2:14PM

Castle no it doesn't that's why I queried it

Castle · 18 September 2019 at 4:57PM

teachergirl wrote: »

Castle no it doesn't that's why I queried it

Well I'm guessing; but once the bank was paid off there was no money/assets left to pay the administrator/receiver and eventually companies House will strike the company off as davidmcn has suggested above.

unholyangel · 18 September 2019 at 10:13PM

Was it a limited company or sole trader? Have you asked the accountant what capacity they are acting? As accountant or as administrators? If limited company, have you checked to see what assets the company has?

When did you pay them and when were they supposed to start work? Have you checked online to see if anyone else has posted anything?

Just wondering whether they've genuinely had an illness which has forced them to retire/stop working or whether they've been in financial difficulty for a while now and took your money knowing full well they were likely going to go under.

You should be offered a refund in either case, but if its a limited company then normally the debt would be limited to assets of that company - directors can only be held personally liable in limited circumstances.

teachergirl · 19 September 2019 at 7:38AM

Thank you unholyangel they were a limited company. I paid them in the April and they were due to start work 2 or 3 weeks later. I can't find anything else online and when we were down there last and met with some of my husbands relatives(all local people) none of them knew anything about it, even though some of them also used them. I don't know how to check their assets and I have not asked the accountants in what capacity they were acting.I do feel it probably was a genuine illness( probably of the father) but there are two sons working for them and several other employees. Which makes me feel they would have known they were in trouble when they took our money

wagtamm · 19 September 2019 at 8:57AM

teachergirl wrote: »

Hi there. I am just looking for some advice. In April I paid £1224.00(by BACCS) deposit to a plumbing and heating company to do some work on a house we own. This was a company that my husbands family had used for more than 50 years and indeed we had used them 5 or 6 times in the past few years. They were a small family company. On the day they were due to start work they phoned our tenants and said that due to family illness they would be starting a week later. The following week they also failed to show and were not answering their phones. A notice went on the door saying they had ceased trading and inquiries should be given to the accountants next door. We wrote to the accountants claiming our interest. We had an e-mail from them very shortly after saying that by the time the bank had been paid there would be nothing left for us but no actual figures.
I have checked constantly on the Government website and there is no sign saying they have gone into liquidation or been dissolved although there are also no signs of them continuing to trade. I know there is probably no chance of me getting my money back but at the same time if there is anything more I should do then I want to do it. The company was a limited company, if that helps with your answers. The only other thing is we live 200 miles away so popping in is not an option.
I don't really know enough about how insolvency or whatever works to know if I have done everything I should

Good eyesight, eh? :cool:
Specsavers will be going bust next if everyone has as good an eyesight as that.

Anyway, any company that enters administration, liquidation etc must register that with Companies House, and you say that has not occurred.
Simply ceasing to trade does not need to be registered, but responsibilty remains with the directors to act responsibily i.e. pay their creditors as amounts fall due and be fully aware og the financial situation of the company at all times, in case it needs to enter insolvency with no income coming in if they are not trading.

e.g. the fact they have £1224 of your money being a deposit for work they agreed to do but allegedly no longer will fulfil.

However, you have both entered into a contract, a contract that should have been completed months ago.

Write to them, not their accountants, and demand that they now honour the work they contractuallly agreed to carry out for you, explaining that otherwise you will have to appoint another contractor and will be expecting the company to settle the new bill, less what is still owed on the contract by you.
(ensure you get a competitive price etc, to avoid future possible challenge)

Then reclaim the money owed to you, by legal means if necessary.

If that then results in proof the company has deliberately disposed of assets to avoid paying creditors as amounts fall due, or favoured some creditors in favour of others in teh event the company is insolvent, although not formally entered into insolvency, then the directors would be guity of wrongful or indeed fraudulent trading.
Contact Action Fraud if necessary with your evidence.
Wrongful trading is a civil offence, but fraudulent trading is a criminal offence, neither of which the directors can defend themselves from by the barrier of limited liability. The maximum sentence following successful prosecution after trial for fraudulent trading is 10 years imprisonment and/or a fine.

I'm sure a company that has traded succesfully for the last 50 years will not allow any of this to develop.

What is the company registration number of company you refer to?
You may live 200 miles away, but there will be people here I am sure who will live closer and may be able tell you what is the current situation.

hpuse · 19 September 2019 at 9:09AM

Empathise with your situation.

I see you have paid by BACS, and as far as am aware - there is no protection by the bank, but I still think it is worth contacting the bank and informing about your situation.

In future, please remember to pay for transacations like these using a credit or debit card.

It is also worth checking (with the accountants) that if the company had professional indemnity insurance, if so - you could attempt to file a claim for unprofessional service received.

As a last step, I would advise you to go ahead and file a small claims

though the chances are less and you would have to pay a small fee to make this claim online.

teachergirl wrote: »

Hi there. I am just looking for some advice. In April I paid £1224.00(by BACCS) deposit to a plumbing and heating company to do some work on a house we own. This was a company that my husbands family had used for more than 50 years and indeed we had used them 5 or 6 times in the past few years. They were a small family company. On the day they were due to start work they phoned our tenants and said that due to family illness they would be starting a week later. The following week they also failed to show and were not answering their phones. A notice went on the door saying they had ceased trading and inquiries should be given to the accountants next door. We wrote to the accountants claiming our interest. We had an e-mail from them very shortly after saying that by the time the bank had been paid there would be nothing left for us but no actual figures.
I have checked constantly on the Government website and there is no sign saying they have gone into liquidation or been dissolved although there are also no signs of them continuing to trade. I know there is probably no chance of me getting my money back but at the same time if there is anything more I should do then I want to do it. The company was a limited company, if that helps with your answers. The only other thing is we live 200 miles away so popping in is not an option.
I don't really know enough about how insolvency or whatever works to know if I have done everything I should

Company ceased trading..what should I do?

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