Three linked kitchen design and fitting companies in Manchester were shut down after taking deposits from over 20 customers without providing the kitchens.
The companies —Smart Choice Kitchens, Empire Kitchens and Bathrooms, and Connect Kitchens— were wound-up by the High Court following an investigation by the Insolvency Service, which revealed a pattern of phoenixism.
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The companies encouraged customers to pay upfront for kitchens that were never delivered. Many customers paid over £50,000 in total and were later falsely informed that the companies had gone bankrupt. Investigators also found that Connect Kitchens was likely set up as a successor to the others, continuing the same fraudulent practices.
David Hope, Chief Investigator at the Insolvency Service, stated, 'The victims found out about the companies through Facebook or Google and were then treated in very similar ways, losing hundreds if not thousands of pounds.' He added that phoenix companies causing financial harm would not be tolerated.
The director behind the three companies, Toni Amana (also known as Toni Amana Warrington), was also involved in three other companies, all of which ceased trading with similar dishonest practices. The Insolvency Service's investigation found that payments were mostly directed to an associate of Warrington, who failed to cooperate with the investigation.
Source: www.bigfurnituregroup.com