Huboo Technologies Limited (now Hub Realisations Limited Company number 09727464) entered administration which resulted in its assets being sold for a surprising £9. The buyer Brislington Tradeco Limited has established Huboo Tech Limited (Company number 16143472) after acquiring assets from the fire sale.
The Breakdown of the Sale
The company sold its assets despite multiple years of financial instability through the following transactions:
Goodwill – Purchased for £1
Intellectual Property – Sold for £1
Shares in Holdco NL – Acquired for £1
Business Records – Bought for £1
Customer Contracts – Purchased for £1
Information Technology – Sold for £1
Plant and Machinery – Bought for £1
Stock – Acquired for £1
The new owner gained the right to operate under a different name after purchasing the assets but escaped from all debts and liabilities that led to the original company’s collapse.
What Was Left Behind?
The asset transfer did not include the following liabilities:
The creditors who were not paid back face no chance of recovering their outstanding debts.
HMRC debts amounting to £2.1 million.
Investor losses totaling £118 million.
The December payroll payments remained unpaid at £1.2 million.
The practice of transferring liabilities to a new company under different ownership creates significant ethical dilemmas.
Implications for Customers
The customers of Huboo Tech Limited remain unaware that the company operates under a new name after acquiring the assets of the previous business. Can businesses place their trust in an organization that has already demonstrated failure once? The new ownership lacks financial guarantees which makes customer contracts under its management uncertain regarding their security.
Conclusion
The minimal asset price of £9 at Huboo’s sale creates multiple concerns about the situation. What measures protect the rights of creditors? Why did Huboo fail to disclose its severe financial problems to its customers before the situation became critical? The most important question remains whether anyone should put their business trust in Huboo Tech Limited.
