Strange situation.

[dudleybloke]

A friend of mine works for the company in the article below, his wages have not appeared and has no work to get on with when he turns up.
https://www.expressandstar.com/news/local-hubs/wal...

Looks like the new director has recently become director of a lot of businesses, mostly in the engineering sector.

https://find-and-update.company-information.servic...

Questions I have is what's the best option for my friend, he's been there long enough to get a small amount of redundancy pay and likes the job so doesn't want to get another just yet but he can't carry on like this for another month.

And what's the new director up to?
I can't find much about him, his address comes up as a courier firm in a block of offices in my searches.
Why buy a company and let it go to the wall like this?
Why all the sudden has he become director of so many companies?
Has he hit it rich and gone on a spending spree and doesn't know what to do or is it about carpetbagging contracts?

Any ideas?

[lostmotel]

How bizarre... one of the other companies he's been appointed to is now in administration https://www.stourbridgenews.co.uk/news/19848569.56...

If you take a look through the People tab on Companies House and look at the former officers you find there are a particular two previous directors. They are directors of this company and this company which has gone through a name change but was listed as a person with significant control of your friend's employer. I assume what is now VCNC18 is a reference to your friend's employer and FC20 is a reference to First Components (the one that's in administration).

The former MD is in a couple of news articles: https://www.insidermedia.com/news/midlands/major-f...https://www.kbscorporate.com/kbs-corporate-advises... and seems to have been trying to build a larger group of engineering companies via acquisition.

So it looks like the portfolio of engineering companies has been sold to a ghost - I can't find any trace of him other than he has also been registered at a serviced office in Glasgow.

I can see in the article you linked that ACAS have been contacted, your friend and colleagues might also want to band together and get some advice from an insolvency specialist as they may need to begin the process of winding the company up themselves if the radio silence continues.

Has the old MD vanished with no explanation?

[dudleybloke]

Thanks for the help. I have no idea about the previous directors, will ask him tomorrow but by the sound of it the shopfloor staff knew very little about what was going on behind the scenes.
I've suggested that someone ring round the other companies that he now owns and see if they know anything or have any way of contacting the new director.
I don't know what to advise him to do regarding keep turning up to work if you know your not going to get paid as he can pretty much walk into another job but is owed nearly 2 months salary and has holiday accrued too plus any redundancy.
I'm thinking the bloke might have died or something but surely someone would have heard something.

[sleepezy]

I do wonder if this has anything to do with Bounce Back Loans (or similar) - most of the companies involved seem to have a new loan of somewhere approaching £50k in the latest set of accounts (those that have filed for periods ending more recently at least).

Annoyingly, the top company (Vecta) doesn't seem to fit this criteria although it is owed quite a lot from group companies so I wonder if they're interlinked. Vecta's website is pretty dead too.

[mw88]

Sorry, can't offer much advise but being local (Unfortunately) I wouldn't be surprised if that entire Industrial estate is knocked down for social housing in the next few years. Seems to be the last one standing on Goscate Lane, and I think there's a "regeneration" project going on in Goscote/Blakenall

[StevieBee]

This is odd enough to warrant national media attention - which may have the effect of drawing out the owners.

[R56Cooper]

Sounds like the business is going to fold. Your friend needs to make plans to find another job.

Not paying staff is grounds for constructive dismissal and as he has over 2 years' service he will have a claim for constructive unfair dismissal. If he delays too long before resigning it could affect his prospects of winning a claim.

Essentially this sounds like a redundancy situation in that the employer has decided to cease trading, albeit has failed to tell the staff.

If there are over 20 staff that could result in them each being eligible for an award of 3 months' pay.

Good news is that in redundancy scenarios the award is underwritten by the state, albeit this is not a straightforward area.

Suggest it is worth the staff getting some legal advice.

[TwistingMyMelon]

It is odd and some great points made already - If it was me I'd get legal advice asap

If I was a betting man I would say that Charles o'sullivan doesn't exist

Does the company have any major tooling/contracts/IP or anything of value?

It could be that it was bought for that without wanting the large liability of staff costs (redundancy) so by hoping staff walk, it solves that issue. It wouldnt surprise me if all staff payment claims going forward are drawn out /firewalled

Interesting point about the bounceback loans..

Call me cynical but I smell a scam/unethical bullst over Charlie being ill/dead

Horrid situation for those employed.

[Ussrcossack]

Valery Beroskin is a previous director of a few companies !

So all sold on, strange situation, murky old world if you ask me

[agent006]

dudleybloke said:

I don't know what to advise him to do regarding keep turning up to work if you know your not going to get paid as he can pretty much walk into another job but is owed nearly 2 months salary and has holiday accrued too plus any redundancy.

Sounds like there's a strong chance that there's no money to pay for any of the above. Even if there was, there comes a point where he will earn more by actually being paid for another job, than he will recieve in redundancy for hanging on.
If he'd been there for decades and had a significant redundancy sum in store then it would be a different choice, but it doesn't aound like that's the case.

[dudleybloke]

He's got another job now, I suggested sending a letter to the known address stating on the outside that action will be taken 14 days from receipt of the letter, then inside state what's owed, and say if he's not been paid in 14 days he's taking a machine, then he will have 28 days to pay before its sold to cover his losses.

It might get the mystery man out of his hiding place.