How Do We Stop the Cycle?
The story of Huboo. The collapse of Bodycare. The shadowy ownership by Baaj Capital and Atalla Capital. These are not just business headlines — they are symptoms of a deeper disease in the UK corporate system. A system that rewards failure, punishes honesty, and allows bad actors to keep circling the drain unchecked.
So, the question remains: How do we stop the cycle?
1. Enforce Accountability for Directors
It’s astonishing how many directors are allowed to preside over the collapse of one company after another with no legal consequences. The Singh brothers, who’ve steered both Huboo and Bodycare to the brink, still remain active in multiple corporate structures. Why?
The Insolvency Service must act faster and more forcefully. Repeat offenders should be disqualified. Their business activities should be barred, and their names flagged within company databases. Without consequences, the lesson learned is: you can do it again.
2. Restrict Pre-Pack Administrations to Independent Buyers
One of the most abused features in UK law is the pre-pack deal. While pre-packs can save jobs and business operations, they are ripe for exploitation — especially when assets are sold back to the same directors who oversaw the failure.
These transactions must be subject to independent scrutiny. If insiders are the buyers, the transaction should be blocked unless reviewed by a panel of creditor representatives and approved by a judge.
3. Mandatory Insolvency Risk Disclosure
Just like food labels warn of allergens, companies at risk of insolvency should be required to disclose this to their customers, staff, and suppliers. Clients of Huboo continued to send stock to a business that was haemorrhaging millions. This lack of transparency is unconscionable.
Let’s put the power of information into the hands of the people who rely on these businesses. Let them decide whether to take the risk — but don’t let it be hidden.
4. Automatic Investigations for Pattern Failures
When the same directors appear in multiple collapsed companies over a 5-year period, that’s not bad luck — it’s a trend. There must be an automated trigger within Companies House and the Insolvency Service to investigate repeat patterns and hold individuals to account.
5. Public Registry of Corporate Failures
We need a free, publicly accessible registry that lists directors associated with collapsed companies. Transparency is the first step toward trust. Let honest business owners distinguish themselves from serial wreckers. Let investors, suppliers, and clients see the patterns for themselves.
6. Real Penalties for Misuse of Phoenix Companies
Phoenix companies can be legitimate. But they can also be a cover for repeated failure and abuse. A phoenix should only be allowed if the failed entity has met clear creditor repayment benchmarks and regulatory approval has been sought.
Make it harder. Make it honest. Make it fair.
Conclusion: Let This Be a Turning Point
The stories told on this blog — Huboo, Bodycare, Baaj, and Atalla — are tragic but instructive. They show us where the cracks are. But they also show us the way forward.
The UK doesn’t have to be a haven for corporate malpractice. With the right reforms, the right voices, and a public that refuses to accept silence, we can change the rules — and change the game.
The cycle only continues if we let it. Don’t let it.
Thank you for reading this series. We’ll continue to monitor Baaj Capital, Atalla Capital, and any future phoenix companies that rise from the ashes. And we’ll be here to ask the questions others won’t.
