The collapse of Huboo Technologies Limited (now Hub Realisations Limited Company number 09727464) raises serious questions about regulatory oversight. The company accumulated large debts while investors lost more than £118 million and the business sold for £9 but financial regulators did not take action. The disaster could have been prevented through enhanced oversight measures.
Huboo’s Financial Warning Signs
The financial records of Huboo demonstrate a company that continued to experience annual insolvency:
2022: £47,108,825 in losses.
2021: £13,389,157 in losses.
2020: £3,539,804 in losses.
The company maintained its operations despite massive financial losses while continuing to secure funding and attract new customers. The regulatory bodies should have taken action before this point.
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 investment in a business that proved to be non-viable. 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 allowed Huboo to keep operating until its final collapse.
The Problem with Pre-Pack Administrations
The pre-pack administration process enabled Huboo to transfer its assets to a new company while eliminating its debts. The legal loophole creates ethical problems because it allows companies to leave behind creditors when they establish new business entities.
The practice of allowing companies to leave behind creditors through new business names should be prohibited.
What measures can regulators establish to stop businesses from taking advantage of this system?
Other businesses will likely repeat the same pattern without changes to the current system.
Conclusion
Huboo’s collapse highlights significant regulatory failings. Customers and investors were kept in the dark, while authorities failed to act. Financial oversight needs improvement to prevent future failures from occurring.
