South East car mechanic banned for trading while insolvent

Eight year ban for garage boss after taking payments prepaid orders from customers despite knowing they would go unfulfilled

South East car mechanic banned for trading while insolvent

The boss of a specialist independent garage has been disqualified from being a director for eight years for trading while insolvent.

The South East London business, Reconditioned Gearboxes, was incorporated in April 2015 to supply and fit recon gearboxes.

Just two years later, however, the business experienced difficulties and by March 2017, it had closed down before the company entered into Creditors Voluntary Liquidation.

Customer complaints

An insolvency practitioner was appointed to wind-up the affairs of Reconditioned Gearboxes when they received a number of complaints from customers.

Complaints ranged from customers not receiving goods and services they had paid for, parts were faulty, and, in some cases, customers had to go to another mechanic to correct defective work

Some customers also reported their vehicles were damaged while they in the care of Reconditioned Gearboxes, while others said they had not been refunded for poor work.

Investigators were able to establish several instances of further misconduct.

Further misconduct

Reconditioned Gearboxes had taken prepaid orders which remained unfulfilled when the company went into liquidation and owed close to £127,000 in unpaid taxes at the point of insolvency.

Despite knowing the company was about to enter into liquidation and could not complete the work, Kevin Woods caused the company to continue taking payments from unsuspecting customers.

In September, the Secretary of State accepted an eight-year disqualification undertaking from Kevin Woods. Effective from 27 September 2019, he cannot, without the permission of the court, be involved in the formation, promotion or management of a company, directly or indirectly.

David Brooks, chief investigator for the Insolvency Service, said: “Customer satisfaction was clearly not a priority for Kevin Woods.

“He continued to take money from customers”

“Not only did he provide a poor service while the company was trading but even when he knew the doors were about to close, he continued to take money from customers without being certain the work would be carried out.

“Eight years is a significant amount of time to be banned from running a company and prevents Kevin Woods from causing any more harm to customers who simply wanted to fix their car.”

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