CJ Employment Solutions Limited (11009099): administration
- Status
- Administration ended
- Administration began
- 2022-12-22
- Administrators
- Sean Williams, Iain David Nairn
- Administrators' firm
- Leonard Curtis
- Incorporated
- 2017-10-12
- Location
- Leeds
- Industry
- 78200 Temporary employment agency activities
Why it went into administration
- HMRC / tax arrears
- Management failings / irregularities
From the administrators' statement
Following the completion of a pre-packaged sale of the Company’s business and assets, the Joint Administrators sent a letter to creditors on 23 December 2022 to provide further information on the sale pursuant to the requirements of the Statement of Insolvency Practice (“SIP”) 16. A copy of the information provided is attached at Appendix M of this report.
The Joint Administrators would like to draw your attention to Section 2.6 to 2.26 of the SIP16 report, which provides background information regarding the Company and events leading up to the Joint Administrators’ appointment.
As set out in the SIP16 report, the Company received notification from HM Revenue and Customs (“HMRC”) of a VAT assessment of c. £100k plus penalties following an investigation into VAT irregularities of one of the payroll providers which the Company used for making payments to its agency staff. Due to this, the Company sought assistance from Reach Commercial Finance (“RCF”), a member of the Leonard Curtis Group (“LCG”), who advised the Company that, should the claim fall due for payment, it would not be possible to obtain new finance for the Company to pay HMRC in full. RCF subsequently referred the directors to Leonard Curtis to consider the Company's alternative options.
Administrators' statement of proposals (2023-02-18) · Companies House register