Liquidator not replying to request to purchase assets

[Pigsfoot1]

Hi, I have never done anything like this before so not sure of the procedure. A competitor of mine went into liquidation in June earlier this year. I have sent several emails to the two contacts at the firm handling the liquidation asking them to make contact as i am interesting in purchasing assets. One asset being the customer list which will have a limited time of when its actually worth anything which i would say is fast running out.

So far, three emails and a phone call and no one has made any attempt to get in touch with me. I would of thought if someone was interested in purchasing assets which helps raise funds for creditors they would be in touch as that's their goal isn't it.

Is this normal, am i going about it the wrong way? any pointers woudl be appreciated.

 

[AlanJ1]

Most likely they have already been sold to the person who went bust as part of an agreement. Happens all the time.

 

[Pigsfoot1]

Most likely they have already been sold to the person who went bust as part of an agreement. Happens all the time.

Even though we hear it all the time its not actually legal to just undersell back to the original owner.. or their buddy... A Liquidators job is to get the best price / deal for any asset.. so from what i understand, if i have made contact as a potential buyer they can not ignore me as they have to entertain all offers to try and get the best deal, only if someone else outbids me or maybe lowballs me but offers to take more assets, retain staff etc ( i.e. best deal ) they could offer it to someone else.. but without talking to me how do they know what my offer is..

i just find it very odd that after 2 months no one has made contact

 

[Lee Green]

It does seem odd that they haven't called you back. Usually if anyone contacts me with interest in assets on a case we would refer them straight to our agent handling the disposal. Or, with something like a customer list then we would be wanting to discuss ourselves. Call the main reception of the IP and ask to speak to the case administrator handling the case..

 

[AlanJ1]

i just find it very odd that after 2 months no one has made contact

As I said because it was already pre-sold.

Not saying it is legal at all but it's the quick and easiest option for liquidatiors.

Someone in our market went to liquidation, we would of 100% bouhgt list, stock, website etc. Turns out the liquidator sold it to someone who has bought 12 other e-commerce failures they have liquidated in the past so it never went to market. Found out what they paid for a few weeks go and we would of paid probably 4 or 5x that amount.

 

[Lee Green]

As I said because it was already pre-sold.

Not saying it is legal at all but it's the quick and easiest option for liquidatiors.

Someone in our market went to liquidation, we would of 100% bouhgt list, stock, website etc. Turns out the liquidator sold it to someone who has bought 12 other e-commerce failures they have liquidated in the past so it never went to market. Found out what they paid for a few weeks go and we would of paid probably 4 or 5x that amount.

You can always report the IP in question. Like all professions, not all work to the same standards .

That said, it is all too easy to claim that you would have paid more after the event. I had a situation recently where we called someone out on this very point who were trying to suggest something had been undersold by us. Since we had not been paid for the asset at the time we offered to revoke the existing sale and sell to them. Fair to say they didnt then make an offer..

 

[Lisa Thomas]

It is strange that the liquidators haven't given you the courtesy of a reply.

You could escalate by threatening to make a complaint via the gateway...https://www.gov.uk/complain-about-insolvency-practitioner

 

[Pigsfoot1]

Thanks to everyone for the guidance, called again and used the advice above which has now initiated a response

Originally they just said there is nothing to sell, to which i said you don't know what i'm looking to buy.

I have said to them I am looking to purchase the old customer database, possibly domain name and social media account. The liquidator has said they will need to speak to the original owner with regards to "intellectual rights" sale... i presume when the company went into liquidation the original owner lost all control over what can and can not be sold... is that correct ?

Any help on how i should respond will be very much appreciated

 

[Lisa Thomas]

Are they saying that the company doesn't own these things?

 

[Pigsfoot1]

Are they saying that the company doesn't own these things?

No i don't think so, i got the impression they are saying they need to check with the former owner to check if Intellectual property can be sold.
" I am liaising with the former owner of the Company to try and explore if a sale of the intellectual property is possible"
I don't understand what the former owner has to do with anything and surely has no rights to property that could be used to raise funds.

 

[fisicx]

A small point. You can’t legally buy a social media account. And a domain name is only a license for use for a defined time period, there is nothing to buy. And the database is only of use if each name gives you permission to contact them.

 

[Pigsfoot1]

A small point. You can’t legally buy a social media account. And a domain name is only a license for use for a defined time period, there is nothing to buy. And the database is only of use if each name gives you permission to contact them.

I can buy ownership of the social media accounts from the company and have the domain transfered to myself.. however this is off topic

 

[fisicx]

You cannot legally buy or transfer social media accounts. No point in pursuing something with the liquidator that they cannot sell you.

 

[Elliot Green]

Even though we hear it all the time its not actually legal to just undersell back to the original owner.. or their buddy... A Liquidators job is to get the best price / deal for any asset.. so from what i understand, if i have made contact as a potential buyer they can not ignore me as they have to entertain all offers to try and get the best deal, only if someone else outbids me or maybe lowballs me but offers to take more assets, retain staff etc ( i.e. best deal ) they could offer it to someone else.. but without talking to me how do they know what my offer is..

i just find it very odd that after 2 months no one has made contact

If the assets were sold quickly after liquidation but before you made contact then that will usually be the end of the matter.

Someone saying they are *interested* in some assets is not the same as making a firm offer for them. Without an offer being made it would be difficult to say the liquidator has done anything wrong at all.

See the case of Brewer v Iqbal - a good one to see what is involved when an IP sells assets and when it goes a bit south:

Insolvency Practitioner Selling Assets: Brewer v Iqbal - Oliver Elliot

Insolvency Practitioner Selling Assets: Brewer v Iqbal. This resulted in a breach of duty claim succeeeding.

www.oliverelliot.co.uk

 

[Porky]

The domains might not be owned by the company, they could be owned by the director, hence not part of the sale, that’s also a possibility.

Appreciate you are looking for a cheap asset buy but I agree that it was probably pre sold and let’s be realistic what is a list of prospective names worth really? If you offered something the new owners would likely out bid you imo - wasting your time

 

[AlanJ1]

I don't understand what the former owner has to do with anything and surely has no rights to property that could be used to raise funds.

They may also not legally be allowed to sell the data to yourself, it will depend on the wording of the T&Cs attached to when the customer signed up to the mailing list. Second point as well that the domain may be privatley held.