The collapse of Huboo Technologies Limited (now Hub Realisations Limited Company number 09727464) raises serious questions about regulatory oversight. The company accumulated increasing debts while investors lost more than £118 million and the business sold for £9 without any regulatory intervention. The disaster might have been prevented through enhanced oversight measures.
Huboo’s Financial Warning Signs
The financial documents of Huboo demonstrate how the company experienced continuous insolvency year by year:
2022: £47,108,825 in losses.
2021: £13,389,157 in losses.
2020: £3,539,804 in losses.
The company maintained its operations by accepting funding and serving customers despite its significant annual losses. The regulators should have taken action at an earlier stage.
Lack of Transparency for Customers and Investors
The customers who used Huboo’s services remained unaware about the severe financial state of the company. Investors maintained their capital flow into a business that was clearly failing. The company should have been required to reveal its deteriorating financial condition to stakeholders.
Who Should Have Acted?
Several regulatory bodies could have intervened:
Companies House – Could stricter financial reporting rules have flagged issues earlier?
Financial Conduct Authority (FCA) – Should they have scrutinized Huboo’s financial activities?
HMRC – With Huboo owing £2.1 million in unpaid tax, should enforcement have been faster?
These institutions let Huboo operate until its final collapse occurred.
The Problem with Pre-Pack Administrations
The pre-pack administration sale of Huboo allowed the company to transfer its assets to a new entity while eliminating its debts. This legal loophole raises ethical concerns:
The practice of allowing companies to leave creditors behind while starting operations under new corporate identities remains ethically questionable.
Regulatory bodies need to establish measures which block businesses from using this system.
Without reform, other companies may follow the same path.
Conclusion
The collapse of Huboo demonstrates major weaknesses in regulatory oversight. Customers and investors were kept in the dark, while authorities failed to act. Financial oversight needs improvement to prevent future failures from occurring.
