Fancie in Liquidation?

[Manlinose 10]

trading whilst insolvent is not illegal

 

if you know your company is insolvent you can carry on trading if you have a reasonable belief that, by carrying on, things will improve and you will make enough profit to clear the insolvency

 

if you are proved wrong and the company goes into liquidation or administration, the liquidator/administrator has to consider whether or not your "reasonable belief" was realistic or just blind optimism.

 

If you are a company director and you allow your insolvent company to carry on trading after the time when a reasonable view would be that it was a lost cause, you could be prosecuted for wrongful trading.

 

The liquidator would do this to try to recover money for the creditors - it is a very expensive Court procedure and can be very risky - the definitions of "reasonable" are very vague and woolly and it is easy in hindsight to know whether the decision to carry on trading was right or not, but often very difficult when you look back and put yourself in the shoes of the director at the time

 

The liquidator reports on the conduct of directors to the department for business, innovation & skills (formerly DTI) and the DTI decides whether or not to apply to disqualify someone from being a director of a limited company for a period of time - it is quite possible that, if you have been a director of 2 or more limited companies which have gone into liquidation in a relatively short period of time, especially if both companies owe money to HMRC, you will be disqualified from being a director of a limited company in the future - usually for 2-5 years - and it may be that a sensible liquidator would advise a person in such circumstances not to become a director of another phoenix company

 

pre-pack administrations have a bad name, but often the only alternative is to shut the business down altogether - it may leave a sour taste that the directors get the business back "on the cheap" and free of debt, but in many cases it means the business manages to keep trading and employing people - the alternative is to shut the business down - it doesn't get any money for the creditors and often means more people unemployed as a consequence

 

although i do admit that some people are just not fit/capable of running a business

 

---------- Post added 17-02-2014 at 14:13 ----------

 

I've known of more "brown envelopes" exchanged in the insolvency business than any other.

 

ah, those were the days!

[taxman 12]

Apparently they are now trading again. Don't know if any of their previous creditors got paid. Nice to see they can keep reinventing themselves without the troublesome issues of paying debts

[BEDROCK 10]

Jesus H Christ, all this fuss over cupcakes !!!

[Cyclone 10]

Jesus H Christ, all this fuss over cupcakes !!!

 

Is that what the fuss is about, not the people who are owed money, the shady dealing, the lack of taxes paid. It's all about the cake.

[BEDROCK 10]

Is that what the fuss is about, not the people who are owed money, the shady dealing, the lack of taxes paid. It's all about the cake.

 

I would say keep the money, just give me my butter cream

[andyofborg 11]

Given the interest in this ladies buns i'm a bit surprised no one has picked up on this:

 

http://www.thestar.co.uk/news/business/cupcake-queen-is-declared-bankrupt-1-6633612?WT.mc_id=Outbrain_text&obref=obinsite

[Goooooogle 10]

http://www.fancie.co.uk/well-what-a-journey/

[mattythefish 10]

http://www.fancie.co.uk/well-what-a-journey/

 

:hihi: what a joke, lets hope what ever she has sold it for goes towards paying her creditors, i am assuming she sold before she was forced to again this time!! been past today its closed and windows all covered up:suspect:

[Ron Burgundy 10]

: been past today its closed and windows all covered up:suspect:

 

It's closed for two weeks, whilst the new owners revamp.

[No User Name 10]

Seems that the Wig & Pen have bought them out.

 

EDIT - ah, already posted.

[andyofborg 11]

Seems that the Wig & Pen have bought them out.

 

EDIT - ah, already posted.

 

will it now be the wig and cup cake?

[Tea_Pot 10]

I am definitively still a fan of Fancie but I'm not sure about the new store. It's very much turned into a bar that also sells cupcakes...an odd combination to me!