Company which took advantage of struggling businesses shut down

A Manchester-registered company has been shut down following an Insolvency Service investigation, which found it was providing misleading services to directors of companies in financial difficulty.

Clark Sinclair Limited’s promotional emails suggested directors could avoid reputational damage by selling their companies before liquidation. The company offered to find buyers for companies with debts, telling clients that sales could be completed within days. The shares would be sold for £1, while Clark Sinclair charged brokering fees of between £2,500 and £6,800.

Investigators identified £123,052 in customer payments, across two company accounts, and identified 51 companies which appeared to have changed ownership following payments to Clark Sinclair. The company also misrepresented the role of insolvency practitioners, incorrectly suggesting they sold company assets solely to pay their own fees.

Clients were not warned that the various actions Clark Sinclair advised them to take could breach their duties as directors. Clark Sinclair’s registered sole director told investigators that they had never heard of the company, raising concerns that they were appointed without their knowledge or consent.

Investigators were unable to identify who was behind the company.

Insolvency Service Chief Investigator, David Usher, said “Clark Sinclair Limited took advantage of struggling businesses by offering directors a misleading route out of their company’s debts, charging thousands of pounds for the service. Selling a company does not prevent its former directors’ conduct from being investigated if it later enters liquidation.

“Clark Sinclair Limited not only deceived their customers but undermined the insolvency sector.”

All enquiries concerning the affairs of this company should be made to the Official Receiver of the Public Interest Unit. Email PIU.OR@insolvency.gov.uk