Retailer closes all UK stores & Crimestoppers target dodgy directors

With another long Bank Holiday weekend on the horizon, we hope you’re making the most of these rare five-day working weeks in between! 

If you’ve been too busy to catch up on all the interesting and important business and insolvency news stories from the past seven days – don’t worry, we’ve got you covered here!

So if you want to know if business energy costs will rise this summer; why business insolvencies have risen for the third month in a row; why a wave of late payments is threatening to drown SMEs; practical advice on the first thing directors must do if they receive a CCJ and why a CIFAS marker could destroy your business if ignored – you can read all these stories and more right here at our advice centre.

Claire’s Accessories

A well-known UK retailer is closing all of its stores and ceasing trading after falling into administration twice in 12 months. 

Claire’s Accessories will close 154 stores with 1,300 staff being made redundant with immediate effect although 350 concessions will remain open. 

Modella Capital, who purchased the brand and also own other struggling firms such as TG Jones and Hobbycraft, said in January that part of the reason they had put Claire’s into administration was due to “alarming low Christmas trading that left it in a vulnerable position.”

As well as facing online competition from the likes of Temu and Shein, other competitors such as Primark and Superdrug compete strongly with their value offering.

The Insolvency Service announce new partnership with Crimestoppers

In an effort to increase the number of reports from the public about company directors operating illegally while disqualified or bankrupt, The Insolvency Service is joining forces with Crimestoppers. 

Director disqualifications can last for up to 15 years in the most serious cases and are issued for a wide range of misconduct from failing to pay tax and not keeping proper accounting records to using company money for personal gain or allowing a business to keep trading when it cannot pay its debts. 

Despite this, some banned directors continue operating so the new partnership allows members of the public to pass on information 100% anonymously to change this. 

Reporting concerns about disqualified directors helps the Insolvency Service use its full range of enforcement powers including criminal prosecutions and confiscation of assets under the Proceeds of Crime Act.

Dave Magrath, Director of Investigation and Enforcement Services at the Insolvency Service, said: “Every year we disqualify more than 1,000 directors because they have shown themselves to be unfit to run a company. Those bans exist to protect the public, creditors and honest businesses from people who have already caused serious harm.

We know that not every breach of a disqualification comes to our attention through official channels. The public often sees things we don’t, such as a banned director running a business, or someone using a new company to walk away from old debts.

Directors who ignore a disqualification rarely stop there too. Time and again we see banned directors go on to commit fraud and cause even greater harm than before. This partnership with Crimestoppers gives people a simple, anonymous way to report their concerns so we can put a stop to these criminal actions. Rogue directors rely on people staying silent. We’re asking the public to help us change that.”

They’re asking anyone with information on the following to come forward:-

  • Anyone acting as a director while disqualified or an undischarged bankrupt
  • Disqualified directors committing fraud
  • Disqualified directors repeatedly using companies to avoid paying debts (known as abusive phoenixism)

To report concerns, people should contact Crimestoppers anonymously on 0800 55111 or visit their website at https://crimestoppers-uk.org/give-information/forms/give-information-anonymously . The charity guarantees complete anonymity. IP addresses are never traced, calls are never recorded and there is no caller ID or 1471 facility.

UYR 

A Yorkshire printing, design and multimedia company has ceased trading and appointed administrators.

The directors of UYR Ltd made the decision to enter administration and cease trading after marketing the business for sale but being unable to find a credible buyer. 

A statement from the directors said: “After difficulty maintaining cashflow and generating sufficient revenue following investment in expansion of the business. Directors sought a sale. Unfortunately they were unable to find a buyer and reluctantly ceased trading and appointed administrators to wind down the company.”

Westbridge

A respected Welsh furniture designer and manufacturer has gone into administration with the loss of 300 positions. 

Westbridge provided sofas and other upholstered items to several high street and premium independent retailers. 

A statement from the business said: “Without any viable offers for the business, it was no longer possible to continue trading and we had to take the difficult decision to close the business.”

Several design rights and pieces of intellectual property have been purchased by the Whitemeadow group as they hope to reintroduce them into the market at a later date.

Zymurgorium

A Manchester based distillery has gone into administration this week. 

Zymurgorium launched in 2016 and sold “an eclectic mix of brews and other unique offerings” with retailers such as Tesco and B&M among their roster of clients. 

They sold a range of craft beers, ciders, gin, liqueurs, mead and other spirits as well as some non-alcoholic options.

The company also ran a bar which was sold to a third party and will reopen shortly after rebranding from its current Project Halcyon identity. Administrators will continue to explore the sale of trademarks and recipes that made Zymurgorium a distinctive brand.”

GM Jones & Son

A supplier to Pukka Pies is closing and going into voluntary liquidation after 27 years in business.

GM Jones & Son Ltd was founded in 1989 and primarily served the fast food industry in the West Midlands, Staffordshire and Shropshire. The company is one of only a handful that sells Pukka Pies products, in fresh, frozen and unbaked forms. 

A statement from Pukka Pies said: “We want to reassure customers that there is no impact on the availability of Pukka products. As one of our valued wholesale partners for many years, it’s sad to see them – particularly a fellow family-run company – face challenges in today’s competitive market. 

“We’ve worked closely with customers to help them transition smoothly to alternative suppliers so people across the UK can continue to enjoy Pukka products as usual.”

Centurion Plumbing Services

A North East Scottish plumbing engineer has gone into liquidation with the loss of ten positions. 

Centurion Plumbing Services (Scotland) Ltd had sites in Elgin and Muir of Ord and operated in the Aviemore, Fort William and Inverness areas. 

A statement from the business said they faced unsustainable cash flow pressures that ultimately made it impossible to continue trading.

Amplyfi

An AI-powered market intelligence platform based in Cardiff is going into voluntary liquidation after trading for eleven years. 

Amplyfi launched in 2015 to assist global clients in identifying and reacting to market changes. The platform’s proprietary technology monitored and analysed massive amounts of web content to summarise developments, generate insights and uncover hidden trends. Early investors included the Cardiff Capital Region, QBN Capital and the Development Bank of Wales. 

A Development Bank of Wales spokesperson said: “We were sorry to be informed that the directors of Amplyfi have taken the decision to proceed with the liquidation of the company.”

No matter what line of business you operate in, these could be a nervous few weeks and months ahead. 

Be proactive and take the time now to get in touch with us to arrange a free initial consultation. 

Our advisors will be able to talk through your current situation and your plans for the business and let you know what options you have available that you might not have considered. 

The sooner you contact us, the sooner we can begin to work together and make your plans a reality – even sooner.