A firm of rogue builders which went bust with more than a million pounds worth of debt had just £126 in its bank account when it folded.
DMB Solutions, run by directors James Powell, Christopher Bibb and Michelle Allen-Foord, is being investigated by both trading standards and the Insolvency Service more than a year after it went into voluntary liquidation.
A progress report from liquidator Begbies Traynor published this week puts its official debts at £1.03million, including unpaid tax bills of £734,609.
However, this figure does not include any of the money owed to clients, which is simply listed as uncertain. In March last year, Begbies Traynor said they had been contacted by 47 customers who claimed they were owed £824,000.
The report, written by joint liquidator Jonathan Beard, says: “We hold a number of computers that we anticipate to have a realisable value but these are currently being used to assist our investigations as they hold company records.
“Our investigations are ongoing at present and as such we are uncertain that they will lead to realisations but are hopeful that funds will be received as a result of them.”
He added: “We have undertaken an initial assessment of the manner in which the business was conducted prior to the liquidation of the company and potential recoveries for the estate in this respect.
“Our investigations are ongoing and we have instructed … a solicitor under a conditional fee agreement to assist us.”
A spokesperson for the Insolvency Service said: “We can confirm we are looking into the conduct of the former directors of DMB Solutions.
“If there is evidence of misconduct and its in the public interest, the Insolvency Service may apply for a disqualification order for a period between 2 and 15 years.”
Other than the computers and some furniture, the company’s only other physical assets were cars which were valued at £6,900, but most of this was tied up in financing agreements. Now these have been sold and other bills paid, the company’s total assets stand at £28.30.
Employees of the Borough Street firm, were left £34,741 out of pocket from unpaid salary and another £17,482 in arrears and holiday pay, and trade creditors £219,507.88.
The liquidators say they are uncertain whether even DMB’s secured creditor, NatWest bank, will get any of the £29,322 it’s owed, let alone its preferential creditors – the employees owed holiday pay – and unsecured creditors – everyone else, including trades and clients.
