A Manchester Company that helped failing businesses avoid legitimate insolvency procedures has been shut down
Davis Acquisitions Ltd first based in Ducie Street before moving to Moston Lane became the director of 78 client companies previously associated with Save Consultants Ltd, allowing directors to transfer control and avoid formal insolvency proceedings.
Websites of both companies promised directors they could “leave their debts behind” and avoid “difficult insolvency proceedings” by selling their companies within 48 hours.
However, the services they were offering bypassed legitimate procedures that protect creditors and ensure proper scrutiny of director conduct.
Davis Acquisitions Ltd was wound-up at the High Court in Manchester on Tuesday 30 September.
Save Consultants Ltd entered liquidation last year after also being wound-up in the public interest following Insolvency Service investigations.
David Usher, Chief Investigator at the Insolvency Service, said:
Davis Acquisitions Ltd was acting as a front to help company directors avoid their responsibilities while harming creditors who were left unable to recover money owed to them.
The company completely failed to co-operate with our investigation and was deliberately undermining the proper insolvency processes that support people and businesses.
This behaviour undermines the integrity of the insolvency system and we have taken robust action to protect creditors and the public interest.
Investigations found that the company had used multiple addresses without permission, including a mail forwarding service that confirmed Davis Acquisitions Ltd had registered there without authorisation and failed to pay invoices.
The company’s telephone number was disconnected, and email addresses went unanswered despite repeated attempts to contact them.
Former directors of some of the 78 client companies confirmed they had dealt exclusively with Save Consultants Ltd, indicating that Davis Acquisitions Ltd acted solely as a front.
