This site uses cookies; by continuing to use our site you agree to our use of cookies. More details in our privacy policy. Close

 

 

Sofa bosses banned for bankruptcy breach 13 May 2014

Two directors of a soft furnishing business have been disqualified from acting as company directors for running a company whilst under bankruptcy restrictions.

Martin Muldowney and Roger John Hallas of Oldham-based CFS Furniture Ltd were disqualified for 11 and five years respectively, following an investigation by the Insolvency Service.

CFS Furniture went into liquidation in January 2012, owing more than £1m to creditors.

Muldowney formally resigned as a director of CFS Furniture on 2 February 2011 after being made bankrupt, and breached the restrictions placed on him by continuing to act as a director of the company between May 2011 and January 2012.

Hallas, who was registered as a director of the company on 24 February 2011, was disqualified for allowing Muldowney to continue to act as a director.

Robert Clarke, head of insolvent investigations north at the Insolvency Service, said: “The bankruptcy restrictions provided for by legislation are there to protect the public and ensure that trading partners can deal confidently with the registered directors of a company.

“Those who knowingly breach such provisions do so at significant risk and will be rigorously pursued by the Insolvency Service.

“In this particular case, not only did the directors of CFS act in a less than transparent manner, but their actions caused considerable losses to be suffered by a trade partner who, after already paying for orders, had to refund their customers for purchases which were never delivered.

“Those losses, and the losses of other parties, were then compounded by the unfair distribution of the company’s cash and other assets, favouring a connected company in a manner entirely unacceptable.”

 

 

blog comments powered by Disqus