Phoenix-style hotel operators disbanded after owing creditors £140k
Two 'phoenix-style' companies used to operate The Huddersfield Hotel in Yorkshire have been disbanded ‘in the public interest’ after creditors were left facing unpaid debts of more than £140k.
Gemgold Enterprises and Night Ltd were just two in a series of 'phoenix-style' companies operating the 39-bedroom Huddersfield Hotel, whose pattern of trading was to incur liabilities and debts before being abandoned, left without assets and replaced by a successor company.
An investigation led by the Companies Investigation Branch of the Insolvency Service revealed that funds that should have been received by Gemgold Enterprises and Night Ltd were diverted into non-company accounts, with nominee directors acting as masks for the true nature of the companies.
Investigators found that an associated company, Hilldean Consortium, a predecessor that went into compulsory liquidation in June 2008, owed more than £26k to creditors, while Night Ltd and Gemgold Enterprises owed £38k and £78k respectively.
Joanne Walker, manager of The Huddersfield Hotel, which has been operated by Wave Style Ltd since May 2009, said the incident hadn’t affected business.
“When Wave Style took over they invested a lot more money into the business,” she said. “It’s obvious to people that we are under new management because we’ve had a redesign at the front of the hotel. Business is slow, but that’s common for the industry at the moment.”
The Insolvency Service will now look to recover any assets owned by Gemgold Enterprises and Night Ltd.
