Has anyone hear of this company and are they legit?

[Lcd83]

Hi. Has anyone ever heard of had dealings with this company?

National company rescue / atherton corporate

They basically buy the shares in a business taking on all liabilities etc allowing you to walk away. If i went through a route like this would there be any risks to myself? Im guessing to good to be true is the case here. I have spoken to them via email through the website and been given a runddown and what it what cost me etc.

I read a similar thread on here regarding a forum member doing something similar so im guessing this is also a bit of an unknown

 

[Lisa Thomas]

I agree with Frank. Another point to consider is we are not advising the directors regarding the new entity. We are giving advice in relation to the old one.

I often point them in the direction of my video as regards the issues with a Phoenix:

- YouTube

Enjoy the videos and music that you love, upload original content and share it all with friends, family and the world on YouTube.

youtu.be

 

[NortonBishop]

I think - but please correct me if I'm wrong - that Frank & Lisa are referring to situations where it is a phoenix liquidation whereas the Original Poster is referring to the approach undertaken (for a fee) by "National company rescue / atherton corporate" where there is no immediate liquidation.

Instead, they "transfer (your) limited company and all its’s (sic) unsecured debts and liabilities (inc BBL, HMRC, landlord debt & trade creditors) to new Directors / shareholders"

 

[Frank Wessely]

I think - but please correct me if I'm wrong - that Frank & Lisa are referring to situations where it is a phoenix liquidation whereas the Original Poster is referring to the approach undertaken (for a fee) by "National company rescue / atherton corporate" where there is no immediate liquidation.

Instead, they "transfer (your) limited company and all its’s (sic) unsecured debts and liabilities (inc BBL, HMRC, landlord debt & trade creditors) to new Directors / shareholders"

You are correct. We went down an interesting side track.

 

[japancool]

If the IP does their job well then the directors will be made aware in the first meeting that their new company will have to re-establish itself in terms of credibility and risk. This can take several months or sometimes longer, but what I tell clients is that there should be no nasty shocks. They might not like everything that I tell them but at least they are aware; there’s not much worse than a nasty shock.

That being said, there are ways to deal with these challenges.

The company I dealt with most certainly did not make any of that clear. On the contrary, they assured me that they would be able to raise finance for me. Once the phoenixing was done, they told me it would be very difficult, which was absolutely NOT what they told me before we started.

So you can see why it left a bad taste in my mouth.

 

[NortonBishop]

You are correct. We went down an interesting side track.

Is there somewhere where the OP might find out what the difficulty might be with this "new" approach of getting a third party to buy the shares?

 

[Frank Wessely]

Is there somewhere where the OP might find out what the difficulty might be with this "new" approach of getting a third party to buy the shares?

As an independent “one stop” resource, no. I think step one would be to consult an IP who can advise on the practical risks and then a lawyer to structure the Agreement with the purchaser to ensure there are appropriate safeguards. However, if/when the company is eventually liquidated the OP is still likely to be “in the frame” insofar as the liquidator’s initial investigations are concerned.

 

[UK Contractor Accountant]

think we are back to the good all days of taking over company and then asset strip it leaving the carcass for the creditors to pick over.

Former Directors/Shareholders are still on the hook though should IP be appointed.

 

[Lisa Thomas]

The company I dealt with most certainly did not make any of that clear. On the contrary, they assured me that they would be able to raise finance for me. Once the phoenixing was done, they told me it would be very difficult, which was absolutely NOT what they told me before we started.

So you can see why it left a bad taste in my mouth.

An IP would not normally get involved with raising finance. Was this definitely a licensed insolvency practitioner who advised you?

 

[japancool]

An IP would not normally get involved with raising finance. Was this definitely a licensed insolvency practitioner who advised you?

Technically, no, but they "owned" an insolvency practise as a separate company (same building, same address). I never paid any fees to the business recovery company either, all the fees were paid to the insolvency company. All they were doing was funnelling business towards the practise.

 

[ABATES]

By "a nasty shock", I mean that directors who want to continue with their phoenixed companies will often find it difficult to get business insurance, trade credit (or even trade accounts) or general finance and credit if their personal finances are linked in with the company's (which is often the case for small businesses), especially if PGs were involved in the old company.

The "business rescue" company I dealt with some years ago promised a lot and delivered none of it beyond insolvency. The only person who benefitted from it was them. Very helpful until they got their money.

hI jAPANCOOL, I have been approached by Company rescue to sell my failing business with some depts. It sounds like you dont recomend these types of sercvices ? Thanks

 

[japancool]

hI jAPANCOOL, I have been approached by Company rescue to sell my failing business with some depts. It sounds like you dont recomend these types of sercvices ? Thanks

Is this one of those "we will buy your company for £1" jobs?

See:

Selling indebted company for £1.00 - scam or not?

Hi all, I have some difficulties with paying back the BBL, the company is not trading anymore for 2 years, and now HMRC comes to me to claim the furlow back (used to pay my salary but did not pay the employer's taxes as I was in a very uncertain situation), then I have been jobless on Universal...

www.ukbusinessforums.co.uk

 

[ABATES]

Is this one of those "we will buy your company for £1" jobs?

See:

Yes i think so they are called Clear company rescue you have to pay them £3000 fee for them to buy your company or sell your company

 

[Ian J]

An IP would not normally get involved with raising finance. Was this definitely a licensed insolvency practitioner who advised you?

I know that your post was a year ago but I'm afraid that I disagree as many insolvency firms do get actively involved in raising finance as I know from my days in the factoring industry. One practice in particular has grown quite large on the back of introducing businesses to factoring companies in return for handling their Administrations

 

[Elliot Green]

There is something similar going around which I have discussed with my regulator, The Insolvency Practitioners Association, a week or so ago and I believe that they were going to investigate this further

Can a regulator investigate a share purchase?

 

[Lisa Thomas]

I know that your post was a year ago but I'm afraid that I disagree as many insolvency firms do get actively involved in raising finance as I know from my days in the factoring industry. One practice in particular has grown quite large on the back of introducing businesses to factoring companies in return for handling their Administrations

Introducing/referring is different from providing the service though, Ian.

 

[Ian J]

Introducing/referring is different from providing the service though, Ian.

Thank you. I understand what you are saying but this particular outfit used to do quite a bit more than just introducing and the relationship that they had with one or two factoring companies was quite incestuous

 

[ABATES]

Hi. Has anyone ever heard of had dealings with this company?

National company rescue / atherton corporate

They basically buy the shares in a business taking on all liabilities etc allowing you to walk away. If i went through a route like this would there be any risks to myself? Im guessing to good to be true is the case here. I have spoken to them via email through the website and been given a runddown and what it what cost me etc.

I read a similar thread on here regarding a forum member doing something similar so im guessing this is also a bit of an unknown

Hi LCD, How did you get on with this ? did you do it ? thanks

 

[Michelle44]

Hi LCD, How did you get on with this ? did you do it ? thanks

Hi ABATES, have you used them?

 

[Mark T Jones]

I recently posted an update on one of many threads on this topic, regarding a former customer.

If you are planning to go this route you need to consider

Legality. Your conscience and the future

It appears that the scheme isn't illegal. Since it is directly targeting Crown debt (HMRC & British Business Bank), you can be sure it is being looked at very closely and that it will either become illegal or they will find that it is already illegal. In the latter case, it's back to you - and you won't get your £6K back.

Everybody knows that this scheme is simply a way to shaft your creditors whilst depriving them of the (admittedly minimal) rights they get under formal insolvency. Is that who you want to be?

And the future. Despite what they tell you, anybody looking at your history will know exactly what as happened, it will be marked as a business failure, not an honest sale. You also loose control - many of the companies owned by Neville Taylor / Atherton et al have multiple CCJs - they make no attempt to defend them.

In the case of my former customer, the company is being liquidated, which will cause him lots of problems. I'm certain the he wouldn't have let that happen, but he doesn't own the company so he can do nothing about it.

 

[Coach]

Hi all I read these threads with interest especially as they are littered with insolvency practitioners and their advice always worries me. I have been coaching hundreds businesses including turn around for 30 years sometimes dealing with IPs and the negative fall out. Frankly the system is full almost entirely with self serving ambulance chasers who cause significant loses to everyone in the process bar themselves. I've even sat in court with a client where a large IP claimed it was there for the creditors but couldn't actually define what the creditors would receive even if the IP was successful, some simple forensics showed the only person getting paid was the IP and their lawyer. I've watched IPS lie, issue stat demands, fake petitions to bully companies for debts that don't exist and much worse.

I find the 'speak to an IP to get your options' line as needing a serious health warning because IPS do not ever work for the directors or even for the creditors because their fees come first. There's no incentive.

Fundamentally these sorts of businesses mentioned here wouldn't exist if IPS didn't behave so poorly in a system that allows it. We should encourage entrepreneurs they employ more people than big businesses the incentives to directors are pretty much zero and then we give the potential rescuers weapons for the sole purpose of enriching themselves before creditors (been on the recieving end too)

My advice is avoid IPs, no problem is unfixable with ingenuity, honesty and a bit of good old negotiation. If insolvency ends up the thing go in with your eyes open, I've helped manage fall out of a few compulsory ones and to be honest it's rarely any worse!

If you happen to be an honest IP good on you! Don't be offended rather do something with your compatriots.

 

[Lisa Thomas]

Wow.

 

[Ozzy]

You've clearly had some bad experiences @Coach, but to add some balance, I personally know and have played golf with some very supportive and genuinely good-natured helpful IPs. I have also come to get to to know some on these forums who offer their time freely helping many who come here at times of need.

There are many rogues in all industries, I have had the misfortune of meeting some 'coaches' who I wouldn't recommend to anyone, so I feel it is important to not tar everyone with the same brush.

 

[Frank Wessely]

Wow.

You took the word out of my mouth.

 

[Mark T Jones]

Back on the topic,it's good to see that the Insolvency Service have shut down one company offering this 'service'

Hopefully others will follow

Court winds-up Manchester firm offering unlicensed insolvency practitioner services

Manchester-based company believed to be offering insolvency practitioner services when it was not authorised to do so is wound-up in court.

www.gov.uk

 

[Lisa Thomas]

Thanks for sharing. We work so hard for our licenses so it's always reassuring when firms like this are stopped.

 

[asdf]

Companies promoting ‘corporate rescue’ scheme shut down after undermining insolvency regime (can't post link but this is the heading of press release on .gov)

Atherton Corporate has now been stopped also thankfully.

I have been a victim of this company. The owner of a company I was employed by sold his company to them the day before a court case with landlords. This director was a multiple offender for using this service. He had spent the last year funneling absolutely everything out of the company into his own personal bank account including just shy of a million in covid grants. They even raided the safe the day after the apparent sale. 70+ staff were left with no job, pay or even the ability to apply for redundancy from the government because the company was still registered as active. We were sent a letter from 'Neville' which was clearly from the business owner telling us to go home and await further instruction and that was it, never heard from again. Almost 3 years on and the company is still technically active even though its basically just been abandoned for the past 3 years. Did I mention this also happened mid November so right before christmas (real class act). We did go through the tribunal process which is painfully slow when the company does not engage or reply to a single bit of correspondence. We eventually won our tribunal for unfair dismissal but because we are chasing a ghost most of us won't see any of the money owed to us.
So yeah I'm very glad Atherton got closed down but I am just hoping the directors who have chosen this route also see some comeuppance the impact to staff, suppliers and customer.

 

[japancool]

It makes me laugh - the directors resigned before the companies were wound up. Maybe they really did believe they would be protected that way.

 

[Lisa Thomas]

It makes me laugh - the directors resigned before the companies were wound up. Maybe they really did believe they would be protected that way.

It's a common misconception.

Most directors have no idea about that fact IP's have a duty to investigate all directors conduct 3 years prior to an insolvency procedure taking place (and can bring claims against the personally if they have committed misconduct).

This is why it's vital to take professional advice and do proper research before taking action.

 

[Elliot Green]

Companies promoting ‘corporate rescue’ scheme shut down after undermining insolvency regime (can't post link but this is the heading of press release on .gov)

Atherton Corporate has now been stopped also thankfully.

I have been a victim of this company. The owner of a company I was employed by sold his company to them the day before a court case with landlords. This director was a multiple offender for using this service. He had spent the last year funneling absolutely everything out of the company into his own personal bank account including just shy of a million in covid grants. They even raided the safe the day after the apparent sale. 70+ staff were left with no job, pay or even the ability to apply for redundancy from the government because the company was still registered as active. We were sent a letter from 'Neville' which was clearly from the business owner telling us to go home and await further instruction and that was it, never heard from again. Almost 3 years on and the company is still technically active even though its basically just been abandoned for the past 3 years. Did I mention this also happened mid November so right before christmas (real class act). We did go through the tribunal process which is painfully slow when the company does not engage or reply to a single bit of correspondence. We eventually won our tribunal for unfair dismissal but because we are chasing a ghost most of us won't see any of the money owed to us.
So yeah I'm very glad Atherton got closed down but I am just hoping the directors who have chosen this route also see some comeuppance the impact to staff, suppliers and customer.

One of the problems is people (creditors) *believe* they will get nothing out of an insolvency case. That creates a conventional wisdom problem. Those who do tend to be particularly tenacious.

Another issue is also that insolvency by its nature is hampered by an absence of funds to investigate in many of the cases, that need more detailed investigations.

 

[Michael Loveridge]

One of the problems is people (creditors) *believe* they will get nothing out of an insolvency case. That creates a conventional wisdom problem. Those who do tend to be particularly tenacious.

Another issue is also that insolvency by its nature is hampered by an absence of funds to investigate in many of the cases, that need more detailed investigations.

Their cynicism is fully justified. I've been involved in dozens of cases where recovery action against the directors would probably have been successful. However, when I explain to my client that any recovery will just be shared pro rata between himself and all the other creditors, so that he would probably end up with about £20, he very rapidly loses interest.

It's also often the case that the professional fees of the IP and their lawyers will effectively absorb any recovery, leaving nothing for the creditors.

This is also the reason that there are so few challenges to IPs' fees. Their hourly rates are in many cases completely extortionate - far higher than those of solicitors, even though much of the work is far simpler than commercial litigation - and they also charge out clerical staff, who should be (as they are with solicitors) part of the overhead. But a challenge is pointless, as any recovery is simply spread amongst all the creditors.

I've often said that a creditor that initiates and pursues a successful claim against directors via a liquidator or against an IP's fees should receive 50% of any recovery as their personal reward for doing so.

It would be even better if it was made much easier for a creditor to sue a delinquent director personally, without having to claim via the liquidator, but sadly I can never see that happening.

 

[Elliot Green]

Their cynicism is fully justified. I've been involved in dozens of cases where recovery action against the directors would probably have been successful. However, when I explain to my client that any recovery will just be shared pro rata between himself and all the other creditors, so that he would probably end up with about £20, he very rapidly loses interest.

It's also often the case that the professional fees of the IP and their lawyers will effectively absorb any recovery, leaving nothing for the creditors.

This is also the reason that there are so few challenges to IPs' fees. Their hourly rates are in many cases completely extortionate - far higher than those of solicitors, even though much of the work is far simpler than commercial litigation - and they also charge out clerical staff, who should be (as they are with solicitors) part of the overhead. But a challenge is pointless, as any recovery is simply spread amongst all the creditors.

I've often said that a creditor that initiates and pursues a successful claim against directors via a liquidator or against an IP's fees should receive 50% of any recovery as their personal reward for doing so.

It would be even better if it was made much easier for a creditor to sue a delinquent director personally, without having to claim via the liquidator, but sadly I can never see that happening.

The cynicism is not unexpected. However, an issue with creditors automatically obtaining 50% of any recovery is this takes no account of the risk an IP is taking. When an IP sues a rogue director the risk they may be personally taking can be very significant indeed. Until you have lost in litigation (particularly when you were confident you were going to win) and had your fingers burnt can ever so easily be overlooked.

Currently, creditors can pursue claims instead of leaving them to liquidators. They can have standing to directly deploy Sections 212 and 423 of the Insolvency Act 1986 themselves for the benefit of creditors as a whole.

Many of the problems are due to the litigation system which moves like molasses and injects procedures that add to costs.

 

[Robert Moore]

In the news now! https://www.thetimes.com/business-m...eme-still-running-despite-crackdown-b02z6f7lf

 

[BenHRRecruit]

Hi. Has anyone ever heard of had dealings with this company?

National company rescue / atherton corporate

They basically buy the shares in a business taking on all liabilities etc allowing you to walk away. If i went through a route like this would there be any risks to myself? Im guessing to good to be true is the case here. I have spoken to them via email through the website and been given a runddown and what it what cost me etc.

I read a similar thread on here regarding a forum member doing something similar so im guessing this is also a bit of an unknown

Has there been any recent developments on this?
I am looking to close my business but I am in a sticky financial situation both with corporation tax and an overdrawn Director's Loan account.
Are these 'We buy your company for £1' firms legit? Any advice would be greatly appreciated.

 

[fisicx]

Are these 'We buy your company for £1' firms legit? Any advice would be greatly appreciated.

NO!

stay well away!

Hopefully one of the forum IP will be along soon to help.

 

[Gavin Bates]

Hi

As you will have seen in the chat a company offering this service was closed down by the Insolvency Service. Yes, they will set up again no doubt.

Talk to an Insolvency Practitioner (IP) about your issues. Any good IP will offer a free initial meeting which will be confidential. Talk to your accountants, solicitor or people you trust to get recommendations if possible.

I hope this helps.

Kind regards

Gavin

 

[japancool]

Are these 'We buy your company for £1' firms legit? Any advice would be greatly appreciated.

To expand on @fisicx's answer: nooooooooooooooooooooooooooo.

 

[BenHRRecruit]

Hi

As you will have seen in the chat a company offering this service was closed down by the Insolvency Service. Yes, they will set up again no doubt.

Talk to an Insolvency Practitioner (IP) about your issues. Any good IP will offer a free initial meeting which will be confidential. Talk to your accountants, solicitor or people you trust to get recommendations if possible.

I hope this helps.

Kind regards

Gavin

Thanks Gavin.
Do you know any Insolvency Practitioners you can recommend?

 

[Gavin Bates]

Ben

I am an Insolvency Practitioner but if you could let me know what region you are in I could suggest someone local to you.

Kind regards

Gavin

 

[BenHRRecruit]

Ben

I am an Insolvency Practitioner but if you could let me know what region you are in I could suggest someone local to you.

Kind regards

Gavin

I am based in south London - Mitcham specifically.

 

[Mark T Jones]

To expand on @fisicx's answer: nooooooooooooooooooooooooooo.

Just to add

Noooooooooooooooooooooooooooooooooooooooo