Leo Jones, the director of an all year round Christmas shop which went into administration owing 287,761 to creditors was disqualified by Blackpool County Court on 19 March 2014 for seven years, for delivering inadequate company records to the administrator.
Leo Jones, 62, of Kirkham, Preston, was the director of Hartes Christmas Shop Ltd (Hartes) which traded from Bond Street, Blackpool and went into administration in February 2010.
Following an investigation by the Insolvency Service, the Secretary of State for Business, Innovation and Skills brought disqualification proceedings against Mr Jones.
Commenting on Mr Jones disqualification, Robert Clarke, head of Insolvent Investigations North at the Insolvency Service, said:
The law is very clear that companies must maintain proper accounting records and that, following insolvency, directors deliver those records to the office-holder.
However, Mr Jones failed to deliver adequate records to the Administrator.
Furthermore, Mr Jones paid substantial amounts to another of his companies when Hartes was insolvent, to the detriment of legitimate creditors. The consequence of his actions is that he has now been disqualified for a considerable period of time.
District Judge Law found that Mr Jones was unfit to be a company director, and disqualified him until 2021. The ban, from 9 April 2014, prevents Mr Jones from being involved in the control or management of a company without permission of the court.
The court heard that as a consequence of the inadequate records delivered up to the Administrator by Mr Jones, it was not possible to reconcile banked receipts with the value of stock disposed of, or verify the extent of cash sales.
The court also heard that between December 2009 and February 2010, when Hartes was in arrears with payments to suppliers, Hartes paid 52,000 to another of Mr Jones companies and 22,613 against credit card accounts not relating to the company.