Insolvency Service Forced Liquidation on 2 UK Companies
Recently the Insolvency Service forced business liquidation on Travel Market and Decode Car Hire which were running websites that purported to have a worldwide search engine to get the best deals on car hires.
Mass complaints from consumers led to an investigation which resulted in both companies being bankrupted on the grounds of public interest. Complaints lodged against the company spoke of consumers paying upfront for car hire only to be awarded a voucher that was unredeemable.
When consumers presented the vouchers to the individual car hire lots they were told that no payment had been made by either Decode or Travel Market. After trying unsuccessfully to obtain a refund, consumer complaints began flooding in.
To compound the matter even further, both companies no longer operated at the registered addresses and attempts to contact them were likewise unsuccessful. After an investigation, it was found that the business was in fact being run from Latvia.
The Insolvency Service’s company investigations supervisor, Chris Mayhew, stated that both businesses were actually operated as fronts for questionable offshore business activities. This is one of the leading reasons for forced business liquidation in the UK.
Any company that tries to defraud the public will quickly learn how serious the UK is in winding up businesses in the public’s best interest. Whilst there may be no defense against wrongful activities, there could be times when false accusations and fraudulent claims can lead to being placed under scrutiny by the Insolvency Service.
If any business believes that it has been unjustly accused, rather than face forced liquidation it would be wise to seek counsel from an insolvency solicitor. However, if a business is out to deceive the public then penalties in the UK are strict leading up to bankruptcy and perhaps even criminal prosecution.