On 7th December 2016 Carl Derek Faulds and Michael Robert Fortune of Portland Business & Financial Solutions were appointed joint liquidators of the company by members and creditors. The company commenced trading in January 2012 as a computer repair shop based in the Marlands shopping centre, Southampton.
During 2014 the company experienced a downturn in trade which was further compounded by the absence of an accountant’s guidance, who relinquished their role in 2013 due to health issues. This caused financial issues for the company and resulted in PAYE and VAT arrears accruing. The director attempted to settle the arrears by entering in to a payment plan with HM Revenue and Customs (‘HMRC’) but soon it fell in to arrears again as it was not able to make the required payments.
In an effort to turn the company around, a new accountant to assist with the completion of the outstanding returns and to assist in resolving the position with the debt due to HMRC. In an effort to further increase profitability, the company reviewed and reduced overheads where possible, including reducing the number of employees by half by not replacing those that left.
HMRC continued to pursue the outstanding amounts due and in September 2016 the company was able to agree a second payment plan to settle the VAT and PAYE liabilities over a period of time. The director hoped the company would be able to maintain the required payments but this proved not to be the case.
Upon the recommendation of the company’s accountant, the director approached Portland for insolvency advice. As a consequence of those discussions the director concluded that the business was no longer viable and that steps should be taken to place the company in to creditors’ voluntary liquidation.
At the outset of the liquidation it was clear that the company had limited assets. We established that no realisable value could be achieved in respect of the motor vehicle subject to a hire purchase agreement. We also confirmed that the cost of removal and sale of the office equipment and stock would outweigh any likely realisable value and as such the equipment was abandoned. We arranged for the cash in our client account to be transferred to the liquidation bank account.
We assisted the five employees that were dismissed as part of the liquidation process to submit claims to the Redundancy Payments Office in order that they would receive their guaranteed entitlements.
Realisations have been insufficient to settle the costs of the liquidation and as a result there are no funds available for a distribution to be paid to creditors.
Creditors are able to access our final report here