BusinessBusiness RecoveryCourt winds up kitchen company run by accountant

Court winds up kitchen company run by accountant

Investigation finds In the Box, run by Philip Nigel Hill, appeared to be trading while insolvent and was using customer deposits to finance its ongoing business operations

A Bolton-based kitchen supplier run by a qualified accountant which took
large deposits from customers but failed to deliver most of their orders has
been wound up following a government investigation.

In The Box Ltd, run by Philip Nigel Hill, was placed into liquidation by the
High Court in Manchester following a probe by the Companies Investigation Branch
of the Insolvency Service.

The probe found that the company appeared to be trading while insolvent, and
was using customer deposits to finance its ongoing business operations.

“[Hill] was a qualified accountant, but his record-keeping was extremely poor
and his own personal money intermingled with company revenues to such an extent
that it was impossible to account properly for company receipts and expenditure,
” the Insolvency Service said.

The investigation found that the company took large deposits from customers
but, in many cases, failed to supply the kitchens or to return monies. Among the
worst examples were:

* A family which paid a deposit of £2,400 in February 2009 and, although
numerous delivery dates were arranged, all were cancelled, including one which
was cancelled by text message late on the evening before the expected delivery.
This family were eventually told that the company could not complete the
contract and that the deposit would be returned, but it was not returned.

* A grandmother who put down a £2,000 deposit in March 2009 and did not
receive her kitchen.

* Another customer had still not taken delivery of a kitchen 11 months after
placing the order.

Head of investigations and enforcement at the Insolvency Service, Robert
Burns, said: “The company did not offer customers any cooling off period or
cancellation rights, which is in contravention of consumer protection law.

“The director had previously been required to give Enterprise Act under
takings to West Yorkshire Trading Standards in respect of similar misconduct to
that uncovered by the CIB investigation.

“The Insolvency Service will investigate reports of behaviour such as this,
and will seek to wind up companies and take further action when necessary.”

Related Articles

Director banned for failing to keep proper accounting records

Business Recovery Director banned for failing to keep proper accounting records

1y Richard Crump, Writer
Interview: R3 president Andrew Tate

Business Recovery Interview: R3 president Andrew Tate

2y Chris Warmoll, Writer
Insolvency Service to probe BHS director behaviour

Business Recovery Insolvency Service to probe BHS director behaviour

2y Chris Warmoll, Writer
Corporate and personal insolvencies fall, latest figures reveal

Business Recovery Corporate and personal insolvencies fall, latest figures reveal

2y Chris Warmoll, Writer
113,000 businesses owed money by insolvents in 2015

Business Recovery 113,000 businesses owed money by insolvents in 2015

2y Chris Warmoll, Writer
Administrations ‘flat-line’ as personal insolvencies hit low

Business Recovery Administrations ‘flat-line’ as personal insolvencies hit low

2y Richard Crump, Writer
Company and personal insolvencies sink to pre-recession lows

Business Recovery Company and personal insolvencies sink to pre-recession lows

3y Richard Crump, Writer
Government to improve insolvent redundancy consultations

Business Recovery Government to improve insolvent redundancy consultations

3y Richard Crump, Writer