Huboo Technologies Limited (now Hub Realisations Limited Company number 09727464) experienced an immediate asset sale through pre-pack administration which brought only £9. The business move through pre-pack administration appears legitimate to some but others believe Huboo used a legal loophole to restart debt-free operations while creditors remained unpaid.
How Pre-Pack Administration Works
A company enters administration to clear debts.
The assets of the company are transferred to a new business entity which the former executives typically control.
The new company operates debt-free but creditors must accept no payment from the company.
Why Huboo’s Pre-Pack Administration Is Controversial
Creditors and Suppliers Lost Everything
The new company doesn’t have to pay any debts that the old company accumulated.
The unsecured creditors together with suppliers received minimal to no payment from the deal.
The Same Business Continues Under a New Name
Huboo Tech Limited operates the same fulfillment services that the previous company provided.
Many people believe this practice serves as a means for companies to avoid their financial obligations.
The Deal Was Done Behind Closed Doors
The £9 sale occurred rapidly so creditors maintained no influence over the transaction process.
The process of pre-pack deals requires better transparency along with stronger regulatory oversight.
Should Pre-Pack Administrations Be Banned?
Companies should need to resolve their debts before they can start operating under new business names.
The power of creditors should increase when they want to challenge these specific business transactions.
Conclusion
The new company Huboo Tech Limited operates without financial obligations from its previous business but this comes with significant costs. The company used a legal loophole to avoid financial responsibility according to some observers.
