A HANDMADE soap firm which collapsed owing more than a quarter of a million pounds to creditors may have its business rate debt written off by Flintshire Council.
The authority is owed £67,250.41 by Westminster Worldwide Trading. The firm, which was based on the Flintshire side of the border at Minerva Avenue on Chester Employment Park, went into liquidation in February last year with debts of £229,408.
Flintshire County Council’s Cabinet will meet on Tuesday, June 16 to consider whether to write-off the debt as it is believed to be impossible to recover.
The write-off will not have a direct impact on Flintshire Council’s finances as Welsh business rates are paid into a central pool – the National Collection Pool for Wales. Each of the 22 authorities receives a share of the pool based on the Local Government Funding Formula.
The business’ outstanding creditors included staff – who were owed £131,484.26 and HMRC, which collectively through PAYE and Corporation Tax was owed £57,370.65.
In his report Flintshire’s Chief Officer for Governance Gareth Owens said: “Sufficient evidence to determine that the business was the correct liable party to bill for non-domestic rates took time, resulting in the initial demand notice being issued in early January 2025.
“The liquidators, Leonard Curtis Insolvency Practitioners, confirmed they had entered a Creditors Voluntary Liquidation and winding up of the company had commenced on February 27, 2025.
“The first instalment of the business rates was due on 1st February and therefore no further recovery action could be initiated before the insolvency commenced.
“Through dialogue with the Insolvency Practitioners and landlord, it was established that the business was no longer trading, had left the premises, and the lease was ended on May 6, 2025.
“The Statement of Affairs lodged at Companies House in February 2025 states the company has cash-in-hand estimated at £8.1k and a deficiency with creditors of £229k.
“The joint liquidators have confirmed that there will be no available dividend to ordinary unsecured creditors. There is no prospect of receiving a dividend from the liquidation and outstanding business rates are deemed to be irrecoverable, so the write off of the debt is now necessary.”
