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Case Studies

60+ YEAR OLD FAMILY RUN BAKERY

customer background

This was a long established family-run business which had a strong reputation in the local community for producing bread, cakes and pastry goods.  When the founding director sadly passed away, the day to day running of the business was left to his Son.   

 Some years later it became clear that the financial affairs of the company had been neglected, and this culminated in a petition for compulsory winding up being presented against the company by HM Revenue and Customs.  The order was subsequently granted and the company placed into liquidation, Beverley Budsworth of The Business Debt Advisor was appointed as Liquidator to the company by the Secretary of State, shortly after the making of the order.   

 It transpired that the director had entered into a purported sale of the trading premises prior to the company entering into liquidation.  The purported purchaser was in occupation of the property and had made various improvements to it.  It was also evidenced that the purchaser had paid an initial deposit to the company, with the balance having fallen due for payment at the date of the liquidation.  

Solution 

There were no other assets to be realised, and the Liquidator immediately conducted a detailed review of the property transaction.  Once the Liquidator was satisfied that the purported sale represented fair value, the sale of the property was completed, and the balance of funds realised for the benefit of the liquidation.  

approved Compulsory Liquidation solution

This resulted in a positive outcome for the purchaser, who had invested significant funds in renovating the property, and the balance of sale proceeds were remitted to the Liquidator, in full, within 12 months of appointment.

The petitioner’s costs were discharged in full, and there are sufficient funds remaining on account to enable the Liquidator to pay a dividend to unsecured creditors’ of the company. At present, creditors’ can expect to receive a reasonable dividend from the insolvent estate.


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