A new form of asset stripping fraud, growing in popularity, has been revealed
by Grant Thornton in a new report.
Disguising themselves as potential rescuers of an ailing business, these
fraudsters buy controlling stakes in the company, strip them of their assets and
leave creditors and shareholders with nothing, the mid-tier firm warned.
To combat this, company directors should check constantly a company’s listing
on the Companies House website to monitor any official change in the company’s
management or structure, the FT reported.
Grant Thornton said this type of fraud was rarely adequately pursued.
‘Once a company is stripped bare of its assets, there are no assets remaining
to allow an insolvency practitioner to investigate and pursue the fraudster,’
says Nick Wood, recovery and re-organisation partner at Grant Thornton.
Steve Absolom and Will Wright from KPMG Restructuring have been appointed joint administrators to City Motor Holdings and associated companies
Partners from Johnston Carmichael have been appointed as joint administrators to Axon Well Interventions Products UK
Begbies Traynor have been appointed administrators of William Anelay Ltd, York, one of Britain’s longest-established construction and heritage restoration companies
Smith & Williamson has been appointed administrators of charity 4Children