The Insolvency Service shut down a company that claimed it could help directors of failed businesses ‘walk away’ with ‘no comeback’ after an investigation.
Leeds-based Ellan NW Ltd, trading as Knowsley Recovery, claimed it could help directors avoid the insolvency system by arranging the purchase of their struggling companies. The company claimed the new owners of the business would then ‘attempt to negotiate with creditors’, but creditors who complained about Ellan NW Ltd said they were unable to contact the organisation to get back the money they were owed.
The Insolvency Service investigation found that Ellan NW Ltd had facilitated the purchase of about 226 companies from directors who paid thousands of…