Huboo Technologies Limited under its new name Hub Realisations Limited Company number 09727464 entered administration which left millions of unpaid debts behind. A fresh company named Huboo Tech Limited emerged right away to assume control of the business operations. The new company appeared to use this method for avoiding financial responsibility.
How Huboo’s Debt Disappeared Overnight
The Old Company Owed Millions
The business left unpaid suppliers together with creditors and HMRC.
The unsecured creditors face a complete loss of their funds.
The New Company Took the Business—Not the Debt
Huboo Tech Limited acquired the fulfillment operation but it does not need to pay debts from the former company Hub Realisations Limited Company number 09727464 (formerly Huboo Technologies Limited).
The same business operation continues without any financial obligation to creditors.
This is a Common Pre-Pack Administration Tactic
Struggling companies frequently employ pre-pack administration to get rid of their debts.
Should businesses obtain permission to start anew with a different name when they want to avoid their financial responsibilities?
Should This Be Legal?
Should companies need to assume their previous debts when they undergo restructuring?
Should creditors receive protection from businesses that use this method to avoid paying their debts?
Conclusion
Huboo Tech Limited operates as a new legal entity yet its business foundation stems from a failed company. The new business entity seemed to represent a new beginning yet it might have been created to avoid paying off millions in outstanding debts.
