(Image: Street View)
A York car dealership has gone under owing more than £400,000.
Club Class Cars (York) Ltd went into a creditor’s voluntary liquidation on June 24.
The retailer sold used cars and light motor vehicles and was registered at Kinfield House, 45 Common Road, York.
The Dunnington business began nine years ago and until 2021 was known as Club Class Photo Ltd.
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Companies House lists its directors as Paul Bailey-Hague and Ian Lord-Laverick.
A report known as a Statement of Affairs, produced by liquidators Forvis Mazars LLP, said the business had £149,600 of assets available for preferential creditors- those who are paid first.
Preferential creditors were owed £7094.13, namely employees’ wages arrears and holiday pay. This left a surplus of £142,505.87.
HMRC was listed as a secondary preferential creditor- those who are paid next- and was owed £30,000 in VAT/PAYE. This left a surplus of £112,505.87.
The business had £11,583 of debt secured by what is known as a floating charge. A floating charge is a legal security interest held by a lender over a changing pool of a company’s assets—such as inventory, stock, or accounts receivable.
This left £100,922.53 available to unsecured creditors - those who are paid last.
The Statement of Affairs says trade creditors were owed £23,348.10. Furthermore, employees were owed £44,533.00 in lieu of notice or redundancy. There were business loans totalling £411,858.24 and connected party creditors owed £47,888.33.
Altogether, the unsecured creditors were owed £527,627.67, leaving an estimated deficiency or shortfall of £426,705.14.
With the business having £2 in called up capital, this left Club Class Cars (York) Ltd with a total deficiency of £426,707.14.