Tie a Knot in it: don’t get ripped off on your wedding day, says The
Insolvency Service
Worrying about the financial security of a supplier is the last
thing an engaged couple wants to think about when planning their own
wedding but with the recent failure of a bridalwear shop, it should
be given serious consideration warns The Insolvency Service.
On 25 January 2011, Anouska Antonia Semp, the 35 year-old former
director of Avorio, a Sheffield-based bridalwear retail company was
declared bankrupt at Barnsley County Court.
In January this year one business partner of Perfections, a bridal
wear shop in Peterborough, filed for bankruptcy when the landlord of
the premises they rented sealed the doors and withheld stock in lieu
of outstanding rent payments. As part of the initial investigation
by the local Official Receiver – the government officer responsible
for investigating financial failure – found that the shop had taken
more than 80 deposits at around £300.00 each on wedding dresses.
The brides, being unsecured creditors, are now unlikely to receive
the wedding dresses they ordered.
In August 2010 Peter Gelardi and Pepita Diamand, directors of Wrapit
PLC a failed wedding gift company, were disqualified from acting as
company directors for a total of 15 years when an Insolvency Service
investigation found they had continued to take payments, of at least
£872,000, from customers when they knew the company was insolvent.
Wrapit’s accounts showed the company had never made a profit and
when it collapsed in 2008 there were 72,000 undelivered wedding
gifts for which the company owed over £4 million.
Before paying deposits or entering into a contract with a wedding
supplier or venue it is wise to make a few simple checks to reassure
yourself of the company’s financial stability.
To check if a director is subject to a bankruptcy order or has been
disqualified from the world of business it is free to check via The
Insolvency Service website. See:
http://insolvency.gov.uk/doitonline/ddbase.htm
It is simple and free to check when a limited company last filed
their accounts and £1.00 will provide access to more detailed
information. See Companies House: http://www.companieshouse.gov.uk/
Checking a company’s reputation is also vital and easily done on the
internet, be sure not to rely on the feedback posted on the
company’s own website.
If you are in a position to do so, if can be worth making large
purchases on a credit card as purchases over £100 are protected
under Section 75 of the Consumer Credit Act 1974. Taking out
wedding insurance may also be an option for some couples.
Finally, anyone suspicious of a company’s trading activity can make
a confidential report to the enforcement hotline: 0845 601 3546, by
email to [email protected]
this is the best blog