The director of a Worcester-based storage facility company has been disqualified from acting as a company director for five years.
Graham Bradbury, of Guardian Self Storage Ltd, was disqualified for “selling assets that did not belong to the company and paying some creditors to the detriment of others”.
An investigation by the Insolvency Service found Bradbury had sold the contents of 29 containers for £29,000 cash in October 2009, after bailiffs working to recover rent arrears on behalf of the company’s landlord had seized assets on Guardian’s premises.
The money generated through the sale was not used for payements to creditors, including HMRC, the landlord of the premises and the company’s bank.
Bradbury stated the money was used to pay wages to sub-contract labourers, redundancy, a solicitor, an accountant, the prospective liquidator and to repay a loan made by an employee, at a time when the company was insolvent.
Guardian Self Storage Ltd entered Creditors Voluntary Liquidation (CVL) on 26 October 2012, owing creditors a total of £178,626.
Sue MacLeod, chief investigator of insolvent investigations, Midlands & West at the Insolvency Service, said: “The law is very clear: all creditors of an insolvent company should be treated fairly so that each obtains a share of any pay-out, rather than creditors being cherry-picked.
“Mr Bradbury had already been in contact with an insolvency practitioner before he sold company assets, yet used that revenue in such a way that some creditors received nothing at all while others were paid in full. The consequence is that he is now disqualified and cannot continue in business, other than at his own risk.”