a company recently went into administration owins suppliers £1,000s - it re trading immediatley under a new name - how is this fair? the suppliers wont get the money and it will continue to rip of people - how can govntment stop this?
2007-06-13 13:57:21 · 3 answers · asked by tapmadi 1 in Business & Finance ➔ Corporations
The receiver has to sanction this practise and quite often does.
It sometimes saves jobs and in some cases the deal involves creditors getting some of their money.
If there has been fraud involved the DTI will deal with it.
Leeds Football Club did the same thing at the end of last season.
2007-06-13 14:45:10 · answer #1 · answered by Bob S 3 · 0⤊ 0⤋
Almost impossible to stop = if the original team didn't get permission they would set up the next Company in the name of their wifes / girlfriends / children / pets ... and go work for them instead...
2007-06-13 19:33:21 · answer #2 · answered by Steve B 7 · 0⤊ 0⤋
It's perfectly legal and fair.
And it just goes to show you shouldn't give out credit unless you know how credit worthy the company is.
2007-06-14 11:47:24 · answer #3 · answered by jojo5050 3 · 0⤊ 0⤋