Two Insolvency firms have been wound up by the High Court in the public interest, for poor business practices.
TAG (Chesterfield) Ltd and The Recovery Partnership Ltd were wound up in the public interest by the High Court following a probe by the Government’s Insolvency Service. Both companies traded under the name The Insolvency Group despite being separate businesses.
According to investigators, this led to “confusion” about which firm was responsible for which client accounts. In addition, both companies’ books and records failed to properly explain their use of clients’ money.
In one case identified by investigators, £150,000 was received by TAG (Chesterfield) Ltd from a client business which later went into liquidation. However, by the time of the liquidation, these funds had been “substantially reduced” by payments which were not explained.
One of the directors of both firms “frustrated the investigation” by failing to co-operate with the investigator and not providing information as requested, the Insolvency Service added.
Case supervisor Scott Crighton said: “The Insolvency Service will not tolerate such behaviours and will take action to stamp them out whenever and wherever they occur.”
Both companies operated from the same premises in Chesterfield.