Estate agency’s administration to be extended for year to give time to recover director’s £235,000 loan

The administration period of an estate agency is set to be extended for a further year.

The administrators say they want the extra time to recover a director’s loan.

Sanderson Young, an upmarket business in the north-east, entered administration last September after a winding-up notice by HMRC.

It owed nearly £1m, including £573,000 to the taxman.

There was also an outstanding director’s loan account, overdrawn by £235,671, which had been used by former owner Duncan Young.

Young’s wife Alison went on to purchase the business out of administration, using a business called DG Young.

The business continues to trade as Sanderson Young and she is managing director.

Duncan Young is the chairman.

The local paper reports that it has seen a letter to creditors asking them to give their consent to an extension of the period of the administration until September 26, 2000.

Administrator RSM says that this is “to enable the administrator to enable the administrator to complete the collection of the outstanding book debts and recover the overdrawn directors loan account”.

A spokesperson for Sanderson Young told the publication: “The former owner of the estate agency business continues to liaise with the administrators.

“It remains an ongoing situation and there is little more to add.

“Today’s Sanderson Young trades under new ownership.”

Duncan Young himself told EYE yesterday evening: “I have fully complied with the administrators in respect of the old company and it was they who suggested we extend the deadline of the administration which was always going to take over 12 months to complete, hence RSM’s request to extend the date to September 2020

“I continue to work with and assist RSM on all matters efficiently and smoothly.
“The new company under its new ownership is thriving and I as a consultant and chairman am delighted to play a role in that company.”

https://www.business-live.co.uk/professional-services/administrators-chase-former-sanderson-young-16869960

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3 Comments

  1. MarkJ

    Why wouldn’t you extend the administration?

    As an administrator Im collecting fees for another year off any of the £235k I can recover.  The creditors will be paying me of course… Have you seen hourly rates for administrators at a partner level?

    So the taxman loses out on most, if not all, of the £573,000.

    Thats a serious amount of tax debt to owe for an estate agent and didnt accrue happen overnight.  Its probably not corporation tax either as profits cant be that outstanding otherwise company wouldnt be in this mess in the first place.

     

    Mean while the phoenix company ‘thrives’ with a spring in its step after a near £1million debt loss….

    Ah the wonders of the UK company and insolvency landscape…..

     

     

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  2. whatdoiknow58

    I must be living under a different moral code than people like this and I quote ‘ The company under new ownership ( err my wife! ) is thriving and I as a consultant and chairman am delighted to play a role ( I’m married to the owner ) in that company ‘. How do these people walk down the street knowing they owe creditors thousands? Must have the hide of a Rhino but probably doesn’t care less anyway.

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    1. DASH94

      Totally agree!  The money owed to the taxman is owed to us – the tax payers.  Pretty much business as usual – that can’t be right

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