Company Management Left to Disqualified Director
Advance Kitchens, Bedrooms & Bathrooms Ltd
A Dewsbury-based supplier of kitchen, bedroom & bathroom fitments, has been wound up in the High Court in Manchester following an investigation by the Companies Investigation Branch (CIB), which is part of the Insolvency Service. Advance Kitchens, Bedrooms & Bathrooms Ltd (‘Advance’) was unable to account for hundreds of thousands of pounds of customer monies passing through accounts controlled by a previously disqualified director.
The company mainly offered kitchen supply and fit services to householders.
The investigation found that, although not formally appointed a director, Akhtar Ahmed Sheikh (also known as Adahm Sheikh) had participated in the management of the company, despite having previously undertaken not to do so, for a period of 7 years from 4 March 2006. This followed his previous conduct as a director of Dream Interiors UK Ltd, a company engaged in a similar type of business to Advance. The investigation also found that the sole appointed director resigned in July 2008, effectively abandoning the company, leaving Mr Sheikh in charge.
The local Trading Standards office had received complaints about Advance and Mr Sheikh, alleging that customer deposits were being taken but that orders were not being completed. Furthermore, the investigation found that Advance’s client records were so poor that it was impossible to follow up on the allegations, whilst financial records failed to provide any account of more than £300,000 of company money passing through a cheque-cashing facility and a sole-trader bank account, both of which were under the sole control of Mr Sheikh. The company was also found to be insolvent, with County Court Judgements totalling almost £37,000 filed against it.
Notes to editors
1. Advance Kitchens, Bedrooms & Bathrooms Ltd was incorporated on 2 April 2007 and latterly had its Registered Office at Unit 304 Bretton Parkway, Dewsbury, West Yorkshire, an address from which it also traded.
2. The petition was presented on 14 October 2009 under s124A of the Insolvency Act 1986. The company was compulsorily wound up by the Court on 8 January 2010.
3. The Insolvency Service carries out confidential enquiries on behalf of the Secretary of State for Business, Innovation & Skills through Companies Investigation Branch.
4. The Insolvency Service administers the insolvency regime investigating all compulsory liquidations and individual insolvencies (bankruptcies) through the Official Receiver to establish why they became insolvent. The Service also authorises and regulates the insolvency profession; deals with disqualification of directors in corporate failures; assesses and pays statutory entitlement to redundancy payments when an employer cannot or will not pay employees; provides banking and investment services for bankruptcy and liquidation estate funds; and advises ministers and other government departments on insolvency law and practice.
5. All public enquiries concerning the affairs of the companies should be made to: The Official Receiver, Public Interest Unit, 3 Piccadilly Place, London Road, Manchester, M1 3BN. Tele: 0161 234 8531. Email: email@example.com
6. Further information about the work of The Insolvency Service is available from www.insolvency.gov.uk
7. Media enquiries should be directed to: Ade Daramy, Press Officer on 020 7596 6187 or Lynne Nasti, Press Office Manager, Insolvency Service, 21 Bloomsbury Street, London, WC1B 3QW. Telephone: 020 7674 6910.
Phone: For enquiries please contact the above department