H.C. Demolition Ltd’s sole director Zoe Ann Louise Cohen, 39, of St Stephen’s Road, Preston, has now been banned from running companies for eight year
A Preston demolition firm which went bust owing huge sums had no accounts for its final 20 months while hundreds of thousands of pounds changed hands, an investigation has revealed.
H.C. Demolition Ltd fell into liquidation in October 2019 but the firm handling that process was left with no explanation as to how or why six figure sums had moved in and out of the company in the months leading up to it. Meanwhile, almost £300,000 was wanted from HMRC in relation to unpaid VAT.
A further £65,000 was claimed in connection with Pay As You Earn (“PAYE”) & National Insurance Contributions but liquidator Anderson Brookes Insolvency Practitioners could not determine the exact amount which should have been due. An investigation was launched by the Insolvency Service and sole director Zoe Ann Louise Cohen has now been punished for failing to keep adequate accounting records.
This issue relates to the period between February 2018 and liquidation in October 2019, during which £469,000 was transferred to an unknown bank account. To this day, liquidators have been unable to determine whether this was done for legitimate business purposes.
Likewise, a sum of £168,000 transferred to the company savings account has not been explained, nor has almost £33,000 which was withdrawn in cash from the company account. A further £50,000 was paid to “retail type establishments” within this period but again it could not be determined whether these were legitimate business dealings.
The investigation by the Insolvency Service concluded that the failure to keep or preserve the accounts for that period meant it was impossible to establish the company’s position and whether transactions were legitimate; its true level of deficiency at liquidation; the true level of company creditors; and the cause and circumstances of its insolvency.
Cohen, 39 and of St Stephen’s Road, Preston, was banned from running companies for eight years. The company was formally dissolved in May.
- 05:56, 11 OCT 2022