A Hull caravan company has been closed down by the High Court after fraudulently securing a Bounce Back Loan.
Regal Luxury Lodges Ltd, based in Stockholm Road, Hull, was wound up by the High Court of Justice, Business and Property Courts of England and Wales in Manchester on January 25, where the Official Receiver was appointed liquidator.
The company was established in June 2019, but by early 2020 was no longer trading.
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Yet the company, through one of its directors, applied for a £50,000 Bounce Back Loan, although the company was not eligible for a Bounce Back Loan of any amount, having already ceased trading.
The Insolvency Service said that neither director co-operated with its investigation, and the directors were also found to have failed in their duties to maintain, preserve or deliver up adequate accounting records.
The service said that, from information available through other enquiries, that the company bank account was being misused, with a bank account held by a third party also being used to receive payments from would-be customers.
As a result, the High Court in Manchester agreed that closing down the company was in the public interest, to prevent it being used as a vehicle for fraud.
The company is not related to Regal Holiday Homes or its successor, Regal Leisure Homes, which is now owned by Omar Group.
Dave Hope, chief investigator at the Insolvency Service, said: “Regal Luxury Lodges Limited took advantage of customers by misleading them into making payment for lodges which it was unable to deliver and compounded this by an egregious abuse of the Bounce Back Loan scheme to obtain a £50,000 loan at the taxpayer’s expense, after the company had already ceased trading.
“The Insolvency Service has acted swiftly to bring this company under the control of the Official Receiver to ensure that the conduct of the directors can be fully investigated.”
