Limited Companies

[armsid]

Why is it so easy to run up huge debts, go bust and then restart as if nothing has happened? Just seen Temperley London a high end fashion house owed 31M to creditors , no money (very little) and then restarts under slightly different name and the  company starts again, Then Katy Price bankrupt to the tune of 3m done for drunk/drug driving no insurance owes the court 8k in unpaid fines, swans off to Vegas then spends 15k on cosmetic surgery in Belgium when she owes all this money? What message does the 2 incidents send out to people? Your comments please

[JohnfromUK]

29 minutes ago, armsid said:

Your comments please

Entirely agree.

Some years ago I ran a moderate sized shoot and looked into a company.  In the end we did a partnership (3 partners) on advice of lawyers/accountants.  In the big foot and mouth outbreak we had a bad year and had to 'borrow' money (done internally by the partners from our 'day job incomes') - and recovered matters the following year, but when the hunting ban came along - we thought shooting would be next on the rent-a-mob 'weekend in the country list', coupled with one of the three partners getting old and the other two having pressures in the 'day jobs', so we decided to wind up the business and partnership.  All done in a planned manner, all creditors paid off and other 'winding up expenses' paid .......... and we had a small amount left to pay a bit to each partner. 

Although it is sad to wind up a business, it is satisfying to close it all off neatly with everyone paid off in full etc.  Had we left money owing I would have felt forever guilty (the day job went on as normal and I lived a 'normal' life with house, car etc.) as having defaulted on others whilst protecting myself.

Edited December 19, 2021 by JohnfromUK

[Mice!]

6 minutes ago, JohnfromUK said:

Although it is sad to wind up a business, it is satisfying to close it all off neatly with everyone paid off in full etc.  Had we left money owing I would have felt forever guilty (the day job went on as normal and I lived a 'normal' life with house, car etc.) as having defaulted on others whilst protecting myself.

I've set up as a limited company two or three times and wound it up each time, this was just what was needed to work in the most tax efficient way while contracting. 

Because of this I haven't been bothered at all about winding it up, these others running up huge debts then closing them obviously couldn't care less that they owe money and no doubt did it this way knowing full well what they were going to do.

Scumbags is my first thought.

[Vince Green]

When we had limited companies we found it impossible to raise any form of finance without providing personal guarantees

[enfieldspares]

If it going bankrupt and walkimng away from your creditors to the tune of £250 million was good enough for Thatcher's darling Freddie Laker then just like Johnson's parties it's good enough for all. In the US these rogues go to jail. Here they go to Buckingham Palace and get knighthoods. Spivs most of them.

Edited December 19, 2021 by enfieldspares

[old man]

17 minutes ago, enfieldspares said:

If it going bankrupt and walkimng away from your creditors to the tune of £250 million was good enough for Thatcher's darling Freddie Laker then just like Johnson's parties it's good enough for all. In the US these rogues go to jail. Here they go to Buckingham Palace and get knighthoods. Spivs most of them.

Proves the ability to be Teflon enough to join the higher echelons of our society. maybe?

The scenario relating to the legal treatment of K. Price tells all one needs to know?

[Mungler]

This kind of caper is a joker card subject for me and something I see everyday.

Needless to say, you can’t wake up one day and ‘suddenly’ find yourself £31,000,000 in the red. 

The prevailing wrongful / fraudulent trading legislation is woefully inadequate. 

It’s a game, and like any game you shouldn’t play unless you know the rules and that means not extending credit to a company that is unlikely to pay you back. You want to borrow £50k off a bank and they will take your kidneys as security but we see trade credit arrangements for enormous sums where no one has take a PG or carried out any due diligence or insurance.

[Scully]

Know a few blokes who have done this locally, one of them at least twice if not two of them. But they’re the kind of people who couldn’t care less, and neither would lose a nights sleep over it. 
They just seem to go from strength to strength.
A local haulage company has gone bang at least twice, all that seems to change is the name of the company. 
If it were me I wouldn’t be able to show my face in public, but most just seem to treat it as all part of business and a bit of a game.  

[Mice!]

1 hour ago, Scully said:

Know a few blokes who have done this locally, one of them at least twice if not two of them. But they’re the kind of people who couldn’t care less, and neither would lose a nights sleep over it. 
They just seem to go from strength to strength.
A local haulage company has gone bang at least twice, all that seems to change is the name of the company. 
If it were me I wouldn’t be able to show my face in public, but most just seem to treat it as all part of business and a bit of a game.  

It makes you wonder why people deal with them a second time?

[Jim Neal]

On 19/12/2021 at 18:04, Mice! said:

It makes you wonder why people deal with them a second time?

It's not their customers who get burned, it's their creditors.  The customers might not even know that the company's "re-branding" is the result of winding up in debt and then re-emerging under a different name.