Paid deposit and company has gone insolvent.

[westtra]

Company that was making out new fitted bedroom units has filed for insolvency. Hoping that our stuff will be made and sitting in there store so we can still do bedroom if the company dealing with the case allows but if not.

I know we are pretty much 4th in line of creditors to receive anything back.

what I am wondering is can I increase my chances of how much that I may receive? If we cant get what we are in process of paying for.

Thanks

[Cyberprog]

Did you pay on credit card? If so, you may be able to get the money back via the card company.

[westtra]

Unfortunately not as other half doesn't have one and I was away from home when it was payed in cash. We have invoices etc. So traceability of whats been paid.

[matjk]

Ouch!! Was it a big deposit ?? Firstly call them (odds are you won't get an answer) and see if it has been made, if it has you could approach them of the reciver and offer a knock down price for it , I would say slim chance, and the problem with these company is they never have assets , they ferret them all away before calling the recivers in ! There's not much you can do to move up the line, it could be a case of just writing off the money

[westtra]

Yes was £2k. Had a kitchen fitted by them couple years ago with no problems so didn't think it would be an issue. Have tried phone and email with company and no joy. Have emailed receivers and waiting a reply as well.

As you say not holding out hope just seeing if I can increase the odds of what we may get back.

[MrJuice]

If your bits are made up, I imagine £200 will secure it. Then you can pay someone else to fit

Can't see the receiver getting any more than £200 for your specific order

[James P]

If the directors are buying the business from the liquidator/administrator you may have done success in suggesting that they simply fulfill your order at no extra cost to you.

The alternative for them is to have taken deposits from the public without providing the goods/service. That is viewed quite seriously as misconduct and if there are many people in your position, the directors may be disqualified. Worth suggesting to them at least.

[westtra]

Well found out today that our stuff had not been made yet so just have to wait to see if we get any money back.

[matjk]

Highly unlikely, if the current directors phonix the company you might be able to do a deal with them to finish the work and discount the £2k but legally they are under no obligation to do this, but also they know they won't get any work from you ever again or this job if they don't! What's the name of the company , I can look it up on Experian and see what the deal it with current directors and other position they hold or have held , might give a clue as to what they are planning

[westtra]

This is the company

https://beta.companieshouse.gov.uk/company/SC28361...

[PurpleMoonlight]

Liquidation doesn't always mean insolvent.

You will have to wait and see,

[Red Devil]

westtra said:

Unfortunately not as other half doesn't have one and I was away from home when it was payed in cash. We have invoices etc. So traceability of whats been paid.

Your O/H paid a £2k deposit in cash. Madness. I bet the company was over the moon with that.

One look at the financial statemenst shows that the P&L a/c bombed in 2012. The plunge continued the following year.
There was recapitalisation in April 2016 in an effort to shore up the balance sheet.
It clearly didn't work because the company began factoring their sales ledger in September last year.
https://s3-eu-west-1.amazonaws.com/document-api-im...

Like any other form of borrowing, this does not come without a cost.
https://www.ultimatefinance.co.uk/our-products/inv...
Borrowing against unpaid invoices in order to boost cash flow is a high risk strategy.
I have seen too many small company directors go down this road before and come unstuck.

I'm afraid the chances of the OP and his O/H seeing any of their £2k again are zero.

[westtra]

Red Devil said:

Your O/H paid a £2k deposit in cash. Madness. I bet the company was over the moon with that.

One look at the financial statemenst shows that the P&L a/c bombed in 2012. The plunge continued the following year.
There was recapitalisation in April 2016 in an effort to shore up the balance sheet.
It clearly didn't work because the company began factoring their sales ledger in September last year.
https://s3-eu-west-1.amazonaws.com/document-api-im...

Like any other form of borrowing, this does not come without a cost.
https://www.ultimatefinance.co.uk/our-products/inv...
Borrowing against unpaid invoices in order to boost cash flow is a high risk strategy.
I have seen too many small company directors go down this road before and come unstuck.

I'm afraid the chances of the OP and his O/H seeing any of their £2k again are zero.

Thanks for that and yep not expecting much if any back. Wife is now banned paying deposits. Wasn't supposed to pay that much to them as transfered money for her and deposit at same time and she went and blew the lot on the bedroom(1/3 as opposed to 15% i was expecting).