at a loss..+

[claireu]

need some advice as im at a complete loss as what to do, i have a small bricks and mortar shop that sells shoes. i am closing at the end of the month because i just cant afford to keep running it. ive had to get a part time job just to survive. i am a limited company and trying to sell as much as i can but i have received a creditors letter for £14k and i just cant afford it. they are wanting to send someone to the shop - notice of a personal visit. this is my only debt everything else has been paid. i dont have much in the bank to pay for help. i was quoted £6k from Atherton Group. im really at a loss, any advice would be greatly appreciated and not sure if it makes a difference but im in Northern Ireland

 

[japancool]

i was quoted £6k from Atherton Group.

These people again - the "buy your company for £1" lot. Stay away from them - speak to a proper insolvency practitioner.

The debt is the company's, not yours. Don't panic.

@Lisa Thomas @Chris Callaghan @Frank Wessely

 

[Gyumri]

These threads are beginning to sound like a running promotion for Atherton. Perhaps they should pay for a dedicated category.

 

[DontAsk]

The debt is the company's, not yours. Don't panic.

Unless there are any personal guarantees.

 

[claireu]

the debt is in my business name, i didnt sign any personal agreements for the contract with the supplier. they are a big brand in Germany. i only had a £3k limit but the sales rep let me order up to £10k, which at the time of ordering my shop was doing well and i had every intention of paying, then cost of living hit like a tsunami and ive been spiralling ever since

 

[JEREMY HAWKE]

WTF are Atherton Group ( Don't tell me they are owned by Spongebob??)

 

[Frank Wessely]

need some advice as im at a complete loss as what to do, i have a small bricks and mortar shop that sells shoes. i am closing at the end of the month because i just cant afford to keep running it. ive had to get a part time job just to survive. i am a limited company and trying to sell as much as i can but i have received a creditors letter for £14k and i just cant afford it. they are wanting to send someone to the shop - notice of a personal visit. this is my only debt everything else has been paid. i dont have much in the bank to pay for help. i was quoted £6k from Atherton Group. im really at a loss, any advice would be greatly appreciated and not sure if it makes a difference but im in Northern Ireland

Hi @claireu

Thanks for posting.

Being based in Northern Ireland makes no difference in this context. I have worked with clients there before in similar situations.

By the sound of it due to the over-enthusiastic sales rep your supplier has contributed to their own problems.

If you would like to give me a call on Monday to discuss how best to deal with this and to run through your options, my contact details are below. In the meantime try not to worry; the company owes the money, not you personally (based on your post).

Thanks.

 

[claireu]

Hi @claireu

Thanks for posting.

Being based in Northern Ireland makes no difference in this context. I have worked with clients there before in similar situations.

By the sound of it due to the over-enthusiastic sales rep your supplier has contributed to their own problems.

If you would like to give me a call on Monday to discuss how best to deal with this and to run through your options, my contact details are below. In the meantime try not to worry; the company owes the money, not you personally (based on your post).

Thanks.

thank you Frank i will

 

[Paul Kelly ICHYB]

@claireu Are you selling via your own website or platforms like Amazon & Ebay?

 

[Mark T Jones]

WTF are Atherton Group ( Don't tell me they are owned by Spongebob??)

In trendy parlance, I believe they have monetised the Spongebob Plan in a big way!

Essentially, you pay them several thousand pounds to buy your failing business for £1 and they dissolve it.

 

[Frank Wessely]

In trendy parlance, I believe they have monetised the Spongebob Plan in a big way!

Essentially, you pay them several thousand pounds to buy your failing business for £1 and they dissolve it.

My understanding is that, rather than a simple dissolution, there is a lot more that goes on in the background to make it worth their while.

Thanks.

 

[JEREMY HAWKE]

My understanding is that, rather than a simple dissolution, there is a lot more that goes on in the background to make it worth their while.

Thanks.

I bet they "promise" to write off PGs

 

[japancool]

My understanding is that, rather than a simple dissolution, there is a lot more that goes on in the background to make it worth their while.

Thanks.

I dunno, judging by the article that @Mark T Jones posted in another thread, they're banking on the strike off going through without investigation. The chap involved has hundreds of companies in his name at various stages of dissolution.

 

[Frank Wessely]

I dunno, judging by the article that @Mark T Jones posted in another thread, they're banking on the strike off going through without investigation. The chap involved has hundreds of companies in his name at various stages of dissolution.

The likelihood though is, as we know, that with objections now being lodged left, right and centre, from banks, HMRC and trade suppliers, the process will be probably be anything but smooth.

The other point to bear in mind as some will know, is that the risks for directors and ex-directors do not disappear on dissolution. Under the Rating (Coronavirus) and Directors Disqualification (Dissolved Companies) Act 2021 , the Insolvency Service is using these new powers to investigate company officers where the dissolution has masked prior misconduct. In certain circumstances, this can still result in disqualification and in some cases, compensation orders being made.

I would expect that if asked, Atherton will say nothing to do with us guv, you had best speak to the previous directors.

Thanks.

 

[japancool]

The other point to bear in mind as some will know, is that the risks for directors and ex-directors do not disappear on dissolution. Under the Rating (Coronavirus) and Directors Disqualification (Dissolved Companies) Act 2021 , the Insolvency Service is using these new powers to investigate company officers where the dissolution has masked prior misconduct. In certain circumstances, this can still result in disqualification and in some cases, compensation orders being made.

This isn't something Atherton are shouting about, funnily enough. It's just, pay us the cash and walk away, job done. Some people, especially those with BBLs, will be in for a nasty shock, I suspect.

 

[Mark T Jones]

My understanding is that, rather than a simple dissolution, there is a lot more that goes on in the background to make it worth their while.

Thanks.

I'd be fascinated to know what the real angle is here

 

[ChrisCallaghan]

I'd be fascinated to know what the real angle is here

My instinct is that there after 2 things in the main:

• Their fee
• Directors loans

Their fee really is the surprise here. OP advised £6,000, which is no cheaper than a Voluntary Liquidation! In the past, other firms who have provided this 'service' often only charged a few thousand, with their selling point being that it was cheaper than a liquidation.

Hopefully the directors loan angle is self explanatory. Once they are the owners of the company, if there is an overdrawn loan account from the previous director(s), they will pursue it. What they will then do with those funds, I wouldn't like to guess. However I doubt they will be passing them on to the insolvent company's creditors.

Company Rescue (a trading style of KSA, a firm of licensed IPs) wrote an interesting article to clear up any confusion about them NOT being connected to National Company Rescue/Atherton. Link below:

Who Are National Company Rescue and Atherton Corporate?

National Company Rescue are offering a solution to your issues by offering to buy your insolvent company. There may be a catch.

www.companyrescue.co.uk

@claireu my apologies for coming to this thread late, I've been on annual leave. Personally I'd stay clear of the likes of Atherton, but obviously my opinion is slightly biased! I'd be more than happy you some advice on your options, however @Frank Wessely has already kindly offered the same, and I'm confident you'll find his advice helpful.