ASSET SOLUTIONS JUNE 2022 ROUND-UP: THE UK’S LATEST BANKRUPTCY AND INSOLVENCY NEWS & STATISTICS 

church insolvency

In this month’s round-up, we will be covering two insolvency stories that have occurred in Manchester and a story from London. Additionally, you will find last month’s insolvency statistics for England and Wales.

You can read last month’s statistics here: Insolvency News & Statistics May

Disqualification for a meat wholesaler

After failing to provide the liquidator with the company’s books and papers, a meat wholesaler from Manchester, Roy Hayes, has been sentenced. For this, he has been handed a six-month sentence.

The 72-year-old director of RH Wholesale Limited came out of Manchester Magistrates Court on the 22nd of April with an additional 4-year disqualification order and a fine of £3,600 with a £115 victim surcharge.

Liquidation in 2016

RH Wholesale Limited entered liquidation back in August of 2016. At that point, the company owed creditors over £92,000.

When the liquidator asked for the company records, Hayes claimed that he was unable to find them. He stated that they were disposed of by the landlord that owned the RH Wholesale trading site. This was disputed by the landlord. 

Without the company books and papers, the liquidator could not verify what happened to the company’s assets.

Hayes also accepted a 6-year director disqualification back in 2018. The Insolvency Service would continue their investigation until he was promptly charged with one count against the Insolvency Act 1986.

Discover more about The Insolvency Service: What does The Insolvency Service do?

Rogue volume IVA provider shutdown

Vanguard Insolvency Practitioners Limited and its three related companies: MDN Consultancy Limited, Newtco Limited and KIS Financial Consultancy Limited were wound-up. This was due to the companies having abused millions of customers’ payments.

Complaints about their practices would uncover serial abuse of the payments made by Vanguard’s customers. This abuse of payments was found after the Insolvency Service launched its confidential enquiries.

Fraudulent activity

Vanguard reportedly began trading in 2015 by using third-party suppliers to help administer the IVAs and realise debtors’ assets. Within 5 years, they had around 14,000 IVA cases under their management.

Between the dates, August 2018 and June 2020 Vanguard made payments to third-party companies totalling over £9 million. This money was grown from their customer estates. Customers believed that this money was taken for expenses and disbursements. However, these third parties would then transfer the money instead into accounts connected to MDN and KIS.

Church group in court over £1.87m of outgoings

SPAC Nation (Salvation Proclaimer Ministries Limited) moved into public interest in the High Court early this month and an official receiver has been appointed as liquidator of the company.

Originally the church group was popular for their charity work around London. However, there soon followed allegations of financial exploitation. The Insolvency Service investigated the accusations. 

Investigation and outcome

Investigators would interview Adedapo Olugbenga Adegboyega, a director of SPAC Nation. Mr Adegboyega insisted that the church group had over 2,000 members but could not prove these figures.

The Insolvency Service investigated and found that SPAC Nation had an expenditure of £1.87m. However, they could not provide any data to support their claimed donations.

Further red flags were raised after they found that the company racked up over £600,000 on rent expenditure within 2 years. This was abnormal since they have no single location which they operated from. 

These expenses and lack of record keeping have led to them being wound up and SPAC Nation remains subject to a statutory inquiry by the Charity Commission. 

Read more about other instances of businesses being wound up: Construction boss banned for failing to account for £700,000 worth of expenditure

England and Wales: Monthly Insolvency Statistics

Company Insolvencies during May 2022

  • There were 1817 registered company insolvencies in May 2022:
    • 1584 CVLs
  • 79% more than the amount registered in May 2021
  •  34% higher than the number registered pre-pandemic in May of 2019

Individual Insolvencies during May 2022

  • There were 2030 DROs and 566 bankruptcies in May 2022
  • The number of DROs was 33% higher than in May 2021 but 11% lower than in May 2019

If you are worried about debt, bankruptcy or possible insolvency, contact Asset Solutions today at 0800 689 3861. Our experienced team members provide unrivalled assistance to individuals throughout the entire insolvency process and help to stop bankruptcy. We understand that anyone facing problem debt is likely to feel overwhelmed and intimidated. That’s why we’re here to support you throughout the process and help you achieve the best results possible for your situation. Contact us today for more information.