Fulfilling Existing Orders

CMorris

Free Member
Jun 11, 2025
2
1
My company is to enter into a CVL and I signed the IP company's letter of engagement, the shareholder's meeting notes where the company agreed to enter liquidation (which was just me as I am the Director and only shareholder) and have been sent a link today to their onboarding software to fill in all the details about the current position of the company. Nothing here has been filled out yet.

I sold online only through 2 online marketplaces and have 90 open orders to fulfil and am in a panic here as if I don't fulfil them, the marketplaces will shut me down permanently. They are my only source of income so am trying to avoid this at all costs as I need to continue trading through them as a sole trader.

I ceased trading today.

The trouble is as follows;

1. I pay RM through Paypal for my postage (pay as you go basis) but the money for orders that I have fulfilled and posted out Monday and Tuesday doesn't leave the company bank account until tomorrow which I cannot stop from happening. Will I be in trouble for paying this money out to cover my postage costs that I paid through Paypal? Should I have ceased trading earlier and will I be in trouble for this? I decided to look into liquidating on Monday and started the ball rolling with the IP on Monday enquiring how to engage with their services.

2. I have to buy postage again for the current 90 open orders. My Mum has kindly said she will cover this cost for me so as to not further take from the company's assets. Will this satisfy the liquidator?

Will the above mean me doing anything that can lead to a prison sentence due to wrongful trading? I normally don't ask such silly questions on an open forum but the IP I'm using isn't open to ask and between having to negotiate the HMRC field force agent trying to seize the assets and the IP try to get to them first and losing my only income source has left my mind in a fuddled panicky mess. And we all know how things at night seem far worse than in the morning.

Any advice would be much appreciated.
 

StevensOnln1

Free Member
Business Listing
Dec 10, 2011
3,688
3
863
Gloucestershire
www.ghxhosting.com
If you didn't fulfil the orders those customers would have to be refunded (or become unsecured creditors if the company has insufficient funds to issue refunds) which would undoubted leave the company in a worse financial position. Paying for postage to enable the company to fulfil those orders from existing stock sounds like the most sensible course of action. I can't imagine a liquidator would have an issue with it and you certainly won't be going to jail for it.

If your mum pays for the postage for the remaining orders then she would become a creditor of the company, as she has effectively lent the company the money to pay for the postage.
 
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Lisa Thomas

Business Member
Business Listing
Apr 20, 2015
5,440
1
1,441
www.parkerandrews.co.uk
If your IP isn't open to open to speak to you then consider dis-instructing them and shopping around.

Have the orders been paid for in full, and if so, what happened to the proceeds?
How much are the orders worth?
How much is the stock worth?
 
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CMorris

Free Member
Jun 11, 2025
2
1
If your IP isn't open to open to speak to you then consider dis-instructing them and shopping around.

Have the orders been paid for in full, and if so, what happened to the proceeds?
How much are the orders worth?
How much is the stock worth?
Very little money we are talking in stock here as it is printed cards. I've posted them off now as if I don't get a move on customers will all want refunds for late delivery.

The money made from the sale will just sit in the business bank account.

Thanks for your reply.
 
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