Hit for Six – Connected Companies Closed Down After Government Investigation

UK Wide Debt Management Limited

Frasier Goldberg Limited

ADC Organisation Limited

ADC Recoveries & Legal Services Limited

Royal Foods Limited

Rabi Foods Limited

Six companies based in Blackburn and Manchester have been wound up in the High Court following an investigation by the Government’s Companies Investigation Branch (CIB).

CIB’s investigation established that the six companies, UK Wide Debt Management Limited, Frasier Goldberg Limited, ADC Organisation Limited, ADC Recoveries & Legal Services Limited, Royal Foods limited and Rabi Foods Limited, although involved in different businesses, were linked to each other through common directors and/or addresses.

Four of the companies, UK Wide Debt Management Limited, Frasier Goldberg Limited, ADC Organisation Limited and ADC Recoveries & Legal Services Limited traded as Debt Collection Agents. In three of those cases, the currently appointed officers could not be located at their known addresses and the companies could not be located at their registered offices or last known trading addresses. However, the recorded officers of ADC Recoveries & Legal Services Limited denied any knowledge of the company and it could not be located at its registered office.

Despite this, the investigation found that ADC Organisation Limited traded between January 2005 and October 2008, during which time receipts in to its known bank accounts totalled £880,000. In the absence of the recorded director and the accounting records, it was not possible to establish what element of that income was generated from up-front fees paid by client or from monies recovered from client’s debtors. It was also not possible to establish whether monies collected on behalf of clients had been paid to those clients by the company.

The investigation also found that Frasier Goldberg Limited traded between May 2007 and September 2008, during which time receipts in to its known bank accounts totalled £89,000. Again, in the absence of the recorded director and the accounting records, it was not possible to establish what element of that income was generated from up-front fees paid by client or from monies recovered from client’s debtors. It was also not possible to establish whether monies collected on behalf of clients had been paid to those clients by the company.

In the absence of the officers of the UK Wide Debt Management Limited and ADC Recoveries & Legal Services Limited, it was not possible to establish the trading activities of the companies.

The fifth company, Royal Foods Limited, was found to have traded from January 2004 as a wholesaler of meat and poultry products from premises at Unit 7, Forrest Street, Blackburn, BB1 3BB and Unit 12, Trident Business Park, Blackburn, BB1 3NU. The investigation found that the accounting records of the company were deficient, particularly relating to the recording of sales income generated both from within and outside the UK. There was also a lack of transparency as to the identity of the true controller of the company, and the company had failed to file its accounts at Companies House.

The sixth company, Rabi Foods Limited, could not be located at its registered office and its director could not be found at his home address.

The High Court found that it was expedient in the public interest that all six companies be wound up.