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How can an independent high street business be 'Dissolved following liquidation' 3 times in 10yrs but continue trading non-stop with the same premises, name & equipment?

7 replies

TulipPink · 12/05/2022 21:19

Just as the title, I don't understand how a business that is repeatedly dissolved (according to companies house) can trade continuously despite being dissolved 3 times. The same shop sign is over the door and has never changed.

OP posts:
IncompleteSenten · 12/05/2022 21:22

Are the same people running it?

DrHildegardeLanstrom · 12/05/2022 21:24

A new Ltd company will be set up, and the shop will just stay trading as the original name. Is this a shisha cafe by any chance?

TulipPink · 12/05/2022 21:28

IncompleteSenten · 12/05/2022 21:22

Are the same people running it?

Yes

OP posts:
TulipPink · 12/05/2022 21:31

Does dissolved following liquidation mean they were forced to close or they chose to as a way of getting the money out at a lower tax rate.

OP posts:
OrangeySmorangey · 12/05/2022 21:34

TulipPink · 12/05/2022 21:31

Does dissolved following liquidation mean they were forced to close or they chose to as a way of getting the money out at a lower tax rate.

Depends whether it was a Members Voluntary Liquidation (MVL) or a compulsory liquidation

SierraSapphire · 12/05/2022 21:34

We've got a business like this locally, though the name changes by one word each time. Different family members are registered as directors each time, though presumably they'll run out of people eventually. Everyone knows they're doing it but they haven't been stopped and they're on their third or fourth incarnation.

JenniferWooley · 12/05/2022 21:57

My old letting agent was like this.

Husband & wife as directors of Lettings 1 Ltd, husband would be removed & start up new Lettings 2 Ltd, wife would wind up Lettings 1 Ltd & be added as director of Lettings 2 Ltd, 6-12 months later wife would be removed as director of Lettings 2 Ltd & start up Lettings 3 Ltd, husband would wind up Lettings 2 Ltd then be added as director of Lettings 3 Ltd. Must've gone through 4-5 changes in the 5 years I lived in the property.

Trading name, the office signage & more importantly my lease remained in Lettings 1 name. All came to light when I left & discovered just how dodgy they were - apparently a year later they did a midnight flit.

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