Every single day, across the world, companies are created and companies are shut down. It’s a sad fact, but it remains a fact nonetheless than around 28% of all businesses fail within the first year, and around 50% fail within the first five. That means for all the success stories, there are plenty of businesses losing momentum and leaving the market.
The reasons for why that might be the case are far too many to possibly ponder here, but we can get a good glimpse of them by taking a look at the latest company liquidation news from around the UK and, indeed, from the rest of the world too. In this article, we’re going to share with you some of the biggest company liquidation stories from the last few months.
MTH Group Ltd Placed into Liquidation
MTH Group Ltd, founded in 1969, has been placed into liquidation with the loss of 20 jobs in Falkirk. The company provided electrical, engineering and support services for cars and commercial vehicles, but the liquidators have cited increased competition from web-based firms, resulting in “unsustainable cash-flow” issues. The liquidators will now work to market the company assets, including the vehicles and specialist equipment.
The liquidating firm, FRP Advisory, said: “MTH Group was highly-regarded for its expertise and wide range of specialist automotive engineering services.
“Unfortunately the financial issues facing the company could not be resolved and the business has now ceased trading and all 20 staff have been made redundant.
“We will work closely with all agencies and services to ensure employees receive every support and assistance at this very difficult time.”
Bridal Company Owners Face Charges Over Insolvency Fraud
A husband and wife who ran a bridal boutique have been handed prison sentences for, amongst other things, diverting company funds to themselves after their company underwent insolvency proceedings, following an investigation by the Insolvency Service.
Rodney Wallace, a former director of Curio Bridal Boutique Ltd and Avalon Personnel Ltd received a total sentence of 27 months imprisonment. Meanwhile, wife Pauline Wallace, former director of Curio Bridal Boutique Ltd, received a sentence of ten months imprisonment suspended for two years, after pleading guilty on the first day of court.
Both defendants had accepted that they made false representation to the High Court in order to receive a validation order, enabling them to access funds which were in a frozen account. From there, Mr Wallace committed fraud by diverting £111,000 to a phoenix company, accepting that his family had received at least £42,000 of the funds from the scheme.
Jawbone goes into Liquidation
The noted technology company Jawbone is going into liquidation, with its assets being funnelled into a new health start-up. The company are best known for their UP fitness tracking wristband and Jambox wireless speaker, and will form a new company called Jawbone Health.
The company, once valued at $3 billion, has launched a number of well received products, but has failed to gain the kind of market penetration that they had hoped for, and has reportedly been struggling financially for some time.