The director of a year-round Christmas shop which went into administration owing £288,000 to creditors has been disqualified from acting as a company director for seven years for delivering inadequate company records to the administrator, following an investigation by the Insolvency Service
Leo Jones from Preston was the director of Hartes Christmas Shop which traded in Blackpool and went into administration in February 2010. At the time Hartes had liabilities of £287,761 and assets which realised £15,000.
Blackpool County Court heard that as a consequence of the inadequate records Jones delivered up to the administrator, it was not possible to reconcile banked receipts with the value of stock disposed of, or verify the extent of cash sales.
The court also heard that between December 2009 and February 2010, when Hartes was in arrears with payments to suppliers, Hartes paid £52,000 to another of Jones’ companies and £22,613 against credit card accounts not relating to the company.
Robert Clarke, head of insolvent investigations North at the Insolvency Service, said: ‘The law is very clear that companies must maintain proper accounting records and that, following insolvency, directors deliver those records to the office-holder. Furthermore, Mr Jones paid substantial amounts to another of his companies when Hartes was insolvent, to the detriment of legitimate creditors.’
