Company helped failing businesses avoid legitimate insolvency procedures
A Manchester-based company has been shut down after investigations revealed it was acting as a front to enable unlicensed insolvency activities previously carried out by another firm.
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Davis Acquisitions Ltd became the director of 78 client companies previously associated with Save Consultants Ltd, allowing directors to transfer control and avoid formal insolvency proceedings.
Websites of both companies promised directors they could “leave their debts behind” and avoid “difficult insolvency proceedings” by selling their companies within 48 hours.
However, the services they were offering bypassed legitimate procedures that protect creditors and ensure proper scrutiny of director conduct.
Davis Acquisitions Ltd was wound-up at the High Court in Manchester on Tuesday 30 September.
Save Consultants Ltd entered liquidation last year after also being wound-up in the public interest following Insolvency Service investigations.
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David Usher, Chief Investigator at the Insolvency Service, said:
Davis Acquisitions Ltd was incorporated in March 2023 and initially claimed to be based on Ducie Street in Manchester, before changing its address to Moston Lane.
Investigations found that the company had used multiple addresses without permission, including a mail forwarding service that confirmed Davis Acquisitions Ltd had registered there without authorisation and failed to pay invoices.
The company’s telephone number was disconnected, and email addresses went unanswered despite repeated attempts to contact them.
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Former directors of some of the 78 client companies confirmed they had dealt exclusively with Save Consultants Ltd, indicating that Davis Acquisitions Ltd acted solely as a front.
The Official Receiver has been appointed as liquidator of Davis Acquisitions Ltd.
All enquiries concerning the affairs of the company should be made to the Official Receiver of the Public Interest Unit: 16th Floor, 1 Westfield Avenue, Stratford, London, E20 1HZ. Email: piu.or@insolvency.gov.uk.
Insolvency work such as acting as a liquidator or an administrator for a company is regulated and can only be done by a licensed insolvency practitioner.
Individuals must pass the Joint Insolvency Examinations Board exams to qualify as a licensed insolvency practitioner. They must also meet certain requirements set out by the regulatory bodies, which include evidence of insolvency experience, fitness and propriety together with one or more references.
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