A father and son have been banned for acting as directors for a combined total of more than eight years, for trading while insolvent at their London-based business.
Robert Newmark, 63, and Brett Newmark, 34, have both been disqualified following an investigation into their business, Rosslyn Hill Limited, by the Insolvency Service.
The investigation found that the bar and restaurant business, which goes by the trading name ‘Beach Blanket Babylon’, had been running up large Crown debts whilst trading insolvently.
Companies House records showed that Robert Newmark had officially resigned from being a company director in 2013, but continued to carry out that role in the business.
Further records showed he was previously banned from being a director in April 2015.
In 2013 the business reported to HMRC that it did not have sufficient funds to pay its outstanding tax liabilities, yet the business continued to trade up until liquidation in June 2014.
At this point the company’s deficiency was £1.19m of which HMRC were owed £1.02m in relation to arrears of VAT, PAYE and National Insurance contributions.
Commenting on the disqualification, Lawrence Zussman, a deputy head of investigations with the Insolvency Service said: “These disqualifications send a clear message to other company directors.
“Even if you are not a registered director, but act in that capacity and continue to trade when you are aware your company is insolvent – the Insolvency Service will investigate and you run the risk of being removed from the business environment.”