Paid 50% deposit but fixture company now 'dissolved'.....

Paid 50% deposit but fixture company now 'dissolved'.....

Author
Discussion

gangzoom

Original Poster:

7,386 posts

230 months

Thursday 16th January
quotequote all
Not been this position before but essentially we paid 50% to a local company for some blinds, not a massive amount of money but 4 figures.

They came around quite a few times, and sent an invoice etc just before Xmas, we paid by bank transfer.

No contact since, and no replies to messages. Just checked on company house they are now 'dissolved'.

The company is based out of a local family home - about 1 mile away, big house etc.

What's the best way to start getting the deposit back?

Do I go to the bank? Go and knock on the door of the house?

I do accept if the money is 'gone' its gone, I'll put it down as a life lesson.

Edited by gangzoom on Thursday 16th January 11:28

krisdelta

4,635 posts

216 months

Thursday 16th January
quotequote all
Knock on door of house - no one likes a fuss outside their home. Polite, but firm.


Rough101

2,715 posts

90 months

Thursday 16th January
quotequote all
Absolutely, get there first.

Sounds like they were trading whilst insolvent.

Are they a sole trader or a Ltd company?

worsy

6,207 posts

190 months

Thursday 16th January
quotequote all
Before you go bashing down the door, it might not be gone. They may have decided to change the structure of their working arrangement (self employed as opposed to ltd company.

OutInTheShed

11,524 posts

41 months

Thursday 16th January
quotequote all
Dissolving a company is not an instant process.

You can't simply receive money into a company bank account and the company be dissolved a couple of weeks later.

DYOR but this sounds beyond dodgy to me.

Evolved

3,903 posts

202 months

Thursday 16th January
quotequote all
worsy said:
Before you go bashing down the door, it might not be gone. They may have decided to change the structure of their working arrangement (self employed as opposed to ltd company.
In which case you’d expect them to answer and reply to messages and communicate this change - however they have done neither.


Go and kick their doors down, metaphorically speaking of course. You’ve been had, my mate.

egomeister

7,187 posts

278 months

Thursday 16th January
quotequote all
Evolved said:
worsy said:
Before you go bashing down the door, it might not be gone. They may have decided to change the structure of their working arrangement (self employed as opposed to ltd company.
In which case you’d expect them to answer and reply to messages and communicate this change - however they have done neither.


Go and kick their doors down, metaphorically speaking of course. You’ve been had, my mate.
Indeed. And even if they were changing things, the OP engaged with the company not the individual.

Be the squeakiest wheel and you might get your money back

gangzoom

Original Poster:

7,386 posts

230 months

Thursday 16th January
quotequote all
Evolved said:
You’ve been had, my mate.
In the context of things, I'm OK with it, life happens, they seemed genuine, was formed in 2021 but I suspect the business just became unstainable.

Shame, as we'll be much be much more cautions with dealing with local firms from now on. We partly went with them to support 'local business', oh well.

sherman

14,443 posts

230 months

Thursday 16th January
quotequote all
If it was under £2k its not worth the time and effort to recover through the courts sadly due to the costs involved.
It may just be one to write off to experience sadly.

megaphone

11,226 posts

266 months

Thursday 16th January
quotequote all
Always pay on a credit card. If they don't take cards, avoid.

Raptor7000r

305 posts

84 months

Thursday 16th January
quotequote all
gangzoom said:
Not been this position before but essentially we paid 50% to a local company for some blinds, not a massive amount of money but 4 figures.

They came around quite a few times, and sent an invoice etc just before Xmas, we paid by bank transfer.

No contact since, and no replies to messages. Just checked on company house they are now 'dissolved'.

The company is based out of a local family home - about 1 mile away, big house etc.

What's the best way to start getting the deposit back?

Do I go to the bank? Go and knock on the door of the house?

I do accept if the money is 'gone' its gone, I'll put it down as a life lesson.

Edited by gangzoom on Thursday 16th January 11:28
When did the company start the dissolution process? I would check that see if it was before or after your deposit was paid. Also If there not far i would go over there and have a chat. You paid your money and have been left out to dry, leaving them to it will only encourage them to do it again.

eliot

11,894 posts

269 months

Thursday 16th January
quotequote all
what the payment made to the ltd company name?

gangzoom

Original Poster:

7,386 posts

230 months

Thursday 16th January
quotequote all
eliot said:
what the payment made to the ltd company name?
Yes. They were engaged with design, coming to site, measuring multiple times. No signs they weren't going to deliver. But I guess its a bit like all the big national companies that fail, they will keep trading (taking money) till they fold, difference been no one knows the state of the company finances that's aren't in the news.

But it's the last time we'll use a local firm and/or anyone who doesn't take AMEX/CC. The one time I had an issue with a company that I paid through AMEX, I had money back in the account by the time I had finished the call with the AMEX rep.

At least we didn't get burnt on the much larger stuff, like glazing/kitchen etc.

gotoPzero

19,095 posts

204 months

Thursday 16th January
quotequote all
I would 100% be going round. If its that close I would be having a drive past a few times in the day and then once I see them home go and knock on. 7pm is always a good time IMO.

I would be asking for the money back into your account. I bet my bottom dollar that they either say "contact the administrators" or make false promises.

Either way I think you need to decide how you want to deal with it because if you try and keep things formal and go the legal route you are probably getting nil.

I know you now know, but never ever pay deposits by debit / bacs. Always use a credit card.

Road2Ruin

5,928 posts

231 months

Thursday 16th January
quotequote all
The company has been 'disolved', which is a legal process. It sounds like they didn't do it correctly, so the directors may be liable. As a minimum, they must notify an debtors of the dissolution. Insolvency is something different.

Peterpetrole

760 posts

12 months

Thursday 16th January
quotequote all
OP has asked what to do, been given plenty of advice, but says they're fine with it, money gone, lesson learned etc.

Fairly pointless starting a thread TBH.

gangzoom

Original Poster:

7,386 posts

230 months

Thursday 16th January
quotequote all
Peterpetrole said:
OP has asked what to do, been given plenty of advice, but says they're fine with it, money gone, lesson learned etc.

Fairly pointless starting a thread TBH.
The summary advice I think is - Knock on the door, but essentially accept its a life lesson?

Simpo Two

89,135 posts

280 months

Thursday 16th January
quotequote all
gangzoom said:
Peterpetrole said:
OP has asked what to do, been given plenty of advice, but says they're fine with it, money gone, lesson learned etc.

Fairly pointless starting a thread TBH.
The summary advice I think is - Knock on the door, but essentially accept its a life lesson?
This why people incorporate - to protect their assets when their company goes tits up.

If the company no longer exists then the individual can perfectly well say 'sorry chum, company's gone, bad luck'. He personally doesn't owe you anything, the individual and the company were two different things. I think what the PHers mean is that you may as well ask him anyway as you have nothing to lose.

OutInTheShed

11,524 posts

41 months

Thursday 16th January
quotequote all
When you dissolve a company, it takes time.
It's a while since I did my two companies, but, parts of it I recall include:

Notices to Companies House which get published in a thing called 'The Gazette'
Forms to fill in and send (internet) to Companies House.
IIRC you have to empty the companies bank accounts well before the end of the process.

https://www.gov.uk/closing-a-limited-company

The was, and should still be, lots of stuff about this on the CH and gov.uk websites.
There are strict rules about having to cease trading and stuff before the dissolution process can happen.
Breaking some of those rules in criminal territory.

I would start by looking at the entries on the CH website and also in the gazette.
Then I would go after the directors.

Directors only have so much isolation for their companies' debts, even less if the break the rules.

Was there any VAT in the deal?

egomeister

7,187 posts

278 months

Thursday 16th January
quotequote all
OutInTheShed said:
When you dissolve a company, it takes time.
It's a while since I did my two companies, but, parts of it I recall include:

Notices to Companies House which get published in a thing called 'The Gazette'
Forms to fill in and send (internet) to Companies House.
IIRC you have to empty the companies bank accounts well before the end of the process.

https://www.gov.uk/closing-a-limited-company

The was, and should still be, lots of stuff about this on the CH and gov.uk websites.
There are strict rules about having to cease trading and stuff before the dissolution process can happen.
Breaking some of those rules in criminal territory.

I would start by looking at the entries on the CH website and also in the gazette.
Then I would go after the directors.

Directors only have so much isolation for their companies' debts, even less if the break the rules.

Was there any VAT in the deal?
Exactly. The proximity of taking money to the company ceasing to exist is suspicious so there might be merit in pointing this out to the directors. They may decide that giving money back is better than the OP causing trouble with HMRC etc