Taylors Estate Agents in Leicester, owned by Mitul Gadhia, previously of Martin & Co and Whitegates Estate Agents, has gone into administration.
Gadhia shot to fame 11 years ago when he launched a Martin & Co franchisee at the age of just 22.
In 2017, at the age of 27, he became The Property Franchise Group’s (TPFG) largest franchisee in terms of office numbers following the purchase of a five-branch business – tripling the size of his property portfolio and taking on 35 new staff.
Gadhia’s Whitegates Leicester purchased Taylors, a well-established estate and lettings agency which had been operating since 1992 and they at the time had five offices across Leicester and Loughborough.
However, in 2020, Miresh Property Company Limited, which owned the Whitegates’ franchises in Leicester, Sileby, Syston (which was Taylors/Whitegates) and Broughton Astley, went into liquidation.
The appointment of a voluntary liquidator was published on 19th September 2020 by Companies House.
Gadhia’s Taylors Estate Agents, based on 3 Halford Street in Leicester, was known to be in trouble.
EYE reported earlier this month that HMRC had issued a winding up petition due for hearing in the High Court in London on 8 March 2023.
The Company accounts for Taylors (Leics) Ltd are three months late being filed and there is an active compulsory strike off application registered.
An administrator was finally appointed yesterday; the formal document is being processed and will be available in 10 days.
For further information, click here.
Whitegates branches are closed after TPFG ends agreement with franchisee
It is called a Phoenix Plan,and has been used for years,even by businesses that were respected.
Some businesses fold and restart with what is known as a pre-pack.
They are advised by professionals,and do not pay their VAT,PAYE,Corporation tax,but pay family excessive amounts,and restart in the same name,with the business being bought by a connected person,and they not be even banned from being a Director,as there is no need.After 5 years,they can become a Director,with no recorded ban.The amounts gained obviously justify everyone involved from Directors to advisers.
Northern Rock formed Northern Rock Property Services in 1987 to acquire agencies,but gave up in early 1990’s and sold the business to someone who drove around in a new Range Rover delivering branch keys to landlords.
The landlords who thought the had a blue chip tenant ,but it was not Northern Rock Building Society formed an action group but the transaction was legal.
Such transactions have been going on for a long time,and it is sad that honest agents see others profiting.Even more concerning is such people can handle clients money,with no repercussions.
We all know it goes on,which is why liquidations look low compared to receiverships and pre-packs.
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