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Legal matters

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Original poster

Is a company still liable if the business has been sold?

23 replies

Bearclaw · 18/04/2021 21:51

In March 2020 I purchased a front door with a 10 year guarantee. Unfortunately the door they installed had the wrong handle and one of the double glazed panes was scratched by the installer. They installed the door because they couldn’t leave me with no door! And they said they would order the correct handle and a new glazed panel and fix it. They confirmed this via email.

Obviously Covid happened. They couldn’t come out to fix the door because of lockdown. I’m CEV and was reluctant to have anyone come to the house. But by August the Covid numbers were lower and I asked them to get on with the repair. They didn’t. I would call and leave a message, get ignored. Call and ask for the manager who was always out, they said he’d call me back but he didn’t. Then they told me I had to call the third party installer who was the guy who scratched the glass and he would sort it. He ignored me too.

When it got to March 2021 I got annoyed and started pestering them every day. After a few days they finally replied and told me the company had been sold in Jan 2021. They said they didn’t install my door so they weren’t liable to fix it.

I can see on Companies House that the directors of the business changed in Jan 2021. But the business name and location, phone and email is still the same. Imo the company is still liable for the 10 year guarantee so the company has to fix it, even though the owners of the company have changed. Is this correct? What do I do if they continue to refuse to fix it?

OP posts:

dementedpixie · 18/04/2021 21:59

How did you pay for it?

kayakingmum · 18/04/2021 22:02

I would phone the Citizen's Advice Bureau.

Original poster

Bearclaw · 18/04/2021 22:09

DH paid by bank transfer.

OP posts:

FluffMagnet · 18/04/2021 22:12

The company hasn't changed. They are taking the piss.

Original poster

Bearclaw · 18/04/2021 22:14

The company has changed hands but it’s still the same company. I’m worried they won’t honour my 10 year guarantee at all now.

OP posts:

FluffMagnet · 18/04/2021 22:16

The company is legal entity with whom you entered into a contract, not the owners. Hence the whole point of companies - to protect owners from personal liability.

FluffMagnet · 18/04/2021 22:23

Sorry, the above probably isn't clear. What I'm getting at is that the company owes an obligation to you. If that company still exists, that obligation continues, regardless who owns it or runs it behind the scene. This needs to be put very clearly to the new management, and suggest they speak to their solicitors if they do not understand the basics of company law.

prh47bridge · 18/04/2021 22:25

Yes, the company is still liable. The fact the owners have changed is irrelevant. The company is a legal person so, unless the warranty had some kind of get out clause in it, they are still liable regardless of who owns the company. Your rights under the Consumer Rights Act are also against this company even if there is a get out clause in the warranty.

The fact they say that they didn't install the door may be a reference to the third-party installer. However, your contract was with the company, not the installer. They may have a claim against the installer for the damage they caused but that is not your problem.

areallthenamesusedup · 18/04/2021 22:31

Best to contact Citizens Advice Consumer helpline.
They have a live chat during working hours.
Google "Citizens Advice Live Chat"
Or their national phone number.

ProfessorSlocombe · 20/04/2021 14:20

Unless a warranty is provided through a 3rd party that can honour it when the company doing the work goes belly up, it's not really worth a fig.

MrsAudreyShapiro · 20/04/2021 16:31

@ProfessorSlocombe

Unless a warranty is provided through a 3rd party that can honour it when the company doing the work goes belly up, it's not really worth a fig.

But the company has not gone belly up, it still exists. They are just trying to fob OP off.

ProfessorSlocombe · 20/04/2021 16:39

But the company has not gone belly up, it still exists. They are just trying to fob OP off.

In this case, yes. However as a general point, it's no use being seduced by a companies 100 year warranty if it relies on them being in business in 100 years time.

Bluntness100 · 20/04/2021 16:41

Ooh some shoddy advice here. It depends on the terms of the sale agreement op and if the new owners took over existing liabilities. They do not have to. They can basically just do a name, customer base and asset purchase.

prh47bridge · 20/04/2021 18:21

@Bluntness100

The OP is clear that it is still the same company, so the new owners purchased the company, not just the name and assets. They therefore took on the existing liabilities.

AllThatFancyPaintsAsFair · 20/04/2021 18:25

@Bluntness100

That's not right of the legal entity still exists is it? The ownership of the company doesn't affect legal agreements it's entered into.

notagainmummy · 21/04/2021 12:30

We had a drive done and the takeover firm are honouring the warranty as it needed repairing

Bluntness100 · 21/04/2021 12:32

Honestly this is incorrect, I’ve worked in m&a. Buying the company can mean many things and you can buy the company, the assets and not the liabilities. There’s no way for the op to know unless she asks this specific question, did the sale inc buying the liabilities.

prh47bridge · 21/04/2021 12:47

@Bluntness100

Please do not give legal advice on subjects where you clearly don't have a clue.

Buying a business can mean that you buy the assets and goodwill, leaving the liabilities with the old owners.

Buying a limited company (i.e. buying the shares) always means you take on the ongoing liabilities. The previous owner may indemnify the new owners but that is not the OP's problem. Her contract was with the company. The company still exists and is still trading so they are liable. Nothing in the way the company was bought can alter that.

MotherOfGodWeeFella · 22/04/2021 07:47

And that's why unscrupulous people dissolve companies and start new ones, phoenix companies: to get out of the liabilities.

EggysMom · 22/04/2021 07:52

OP, when you say it's the same company, are they using the same Company Registration Number (recorded at Companies House)? If so, and only the directors have changed, then it's the same company and they hold the liability.

However I have known situations where a new registered company has been set up, different registration, same premises, same email and telephone, incredibly similar name or even adopting the old one as a "trading as" name. If that is the case, then it's a new company with no liability to you.

MotherOfGodWeeFella · 22/04/2021 08:04

Pretty sure the OP has stated that only the directors of the company have changed.

Motnight · 22/04/2021 08:07

I'm sure that our double glazing firm were part of a consortium insurance type thing so if they went bust customers would still have rights should anything go wrong.

Sorry I am being so vague Op, it was a while ago!

Motnight · 22/04/2021 16:02

@Motnight

I'm sure that our double glazing firm were part of a consortium insurance type thing so if they went bust customers would still have rights should anything go wrong.

Sorry I am being so vague Op, it was a while ago!

It was FENSA! Have a google, it could be helpful Op.

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