Insolvency: internet auction trading company closed by UK authorities
Trade Suites Limited was incorporated on 28 October 2008 and its registered office is at Hill Dene House, Main Street, Staxton, Scarborough. But it operated its business over the internet with a warehouse in Bridlington, Dorset, at the other end of England. The Companies Investigation Branch of The Insolvency Service (a government agency) looked into the company when it ceased trading and has now obtained an order to wind it up. What they found was a mess.
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The Insolvency Service says that it found that ‘TSL’ sourced goods from a manufacturer in China andaccepted deposits or payment in full with customer orders. But ‘TSL’ would either delay for several months before placing the order with the manufacturer or, in some cases, fail to place the order at all, leaving many customers without the furniture they had paid for.
The investigation also found that a small number of customers also paid for goods after the company had ceased trading after being assured their goods were available for delivery when that was not the case.
The director of ‘TSL’ failed to ensure adequate accounting records were kept making it impossible to link customer sales to receipts. In addition no records were kept for more than GBP116,000, including GBP32,000 withdrawn in cash, GBP9,000 paid over to a connected business and GBP20,000 paid to the credit card belonging to a third party, says The Insolvency Service. Examination of the directors bank account found the proceeds of sales from an internet auction site were "inappropriately paid into his personal bank account. "
The petition was presented under s.124A of the Insolvency Act 1986 on 03 February 2011 and the Winding-up Order was made on 21 June 2011.
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