Wednesday, 9 December 2015

Crumpet Cashmere had already done a prepacked deal - when wiil we learn?

This is fast becoming a farce.

Crumpet England went into Administration in 2012. The company was the same as the one that has just collapsed.

In the report the administrators have a pre packed deal with a company called Crumpet Cashmere Ltd. CC plan to buy the assets of Crumpet England for £80k - they eventually paid only £60k.. This left the company with a deficit of £750,000 owed to a mix of banks and creditors. 

It stipulates in this deal that the two founding directors of Crumpet England are not allowed to be directors of the newco. It states they will be 'employees'. In September 2013 both become directors of the newco Crumpet Cashmere and the 'director' put there by the administrators resigns. The final closure of Crumpet England only took place in October 2014, a whole year after these two had been made directors.

By March 2014 these two schemers are raising money on Crowdcube.

Now it remains to be seen if they will try this tactic again but I wouldnt put it past them.

Surely we need new rules for prepacked deals - you simply cant have people carrying on like this without any recourse for those they steal from.

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