Hub Realisations Limited Company number 09727464 (formerly Huboo Technologies Limited) failed because of financial mismanagement which left both creditors and customers without any resolution. The business has been revived under the name Huboo Tech Limited which leads to the question of whether regulators should intervene.
Why Regulators Should Investigate
Huboo’s Pre-Pack Sale Looks Suspicious
The company was sold for just £9, wiping out debts while continuing operations.
The new owners received unfair advantages through this deal which harmed the interests of creditors.
Lack of Transparency with Customers
Businesses that used Huboo services never received any indication about the company’s financial difficulties.
Fulfilment providers should be mandated to reveal financial instability risks to their clients.
Millions in Unpaid Tax
At the time of its collapse Huboo owed HMRC £2.1 million.
Should businesses be allowed to restart without paying what they owe the government?
Could Stricter Regulations Prevent Another Huboo?
Fulfilment companies should demonstrate their financial stability before accepting new clients.
Businesses should face restrictions when they attempt to begin operations again through a new company name following administration.
Conclusion
The UK insolvency laws face criticism because of the unfair treatment of businesses following Huboo’s collapse. The current system lacks sufficient safeguards to prevent other companies from following the same pattern of behavior.
