Telford's Smart Homes in liquidation after client refuses to pay £10,000
A Telford company which was refused £10,000 it was owed by a client has been put into liquidation.
Smart Homes, based on the Queensway Link Industrial Estate in Stafford Park, Telford, entered voluntary liquidation owing £40,000 because it said the costs of chasing an unpaid bill were too high.
The administrators said Smart Homes was never paid for one of its jobs, and couldn’t afford court action to reclaim it.
It is believed two jobs have been lost.
The company, which carried out the development of building projects, was owed in excess of £10,000 by one client, and without that money the company struggled to complete other jobs or pay its creditors.
Now Smart Homes will be wound down by liquidators at Silke & Co. It ended up making a loss of around £40,000.
Spokeswoman Catherine Lee-Baggaley, one of the liquidators, said: “The company was incorporated on January 25, 2016 and rented premises in Stafford Park.
“It was listed to carry out the development of building projects. We believe it was set up with the intention of providing lettings and management services in addition to building projects, but this didn’t come to fruition.
“According to the director, in December 2016 the company began to experience difficulties with one of its contracts. The company was in the process of completing a project when the client decided to stop all building works pending an independent building survey.
“At this point the company was owed in excess of £10,000 by the client.
“The client asked for the company to quote for the finishing works, which were no more than £3,000, however the client decided to instruct another builder to complete the project.
“The company has never received payment for the work completed and could not afford to take court action.”
Ms Lee-Baggaley said that once the company had suffered the loss, its problems snowballed.
“The money owed had a severe impact on the company’s cash flow resulting in it having insufficient funds to complete other jobs and to pay creditors,” she said.
“The director tried to obtain a loan to assist in cash flow, but was unsuccessful.
“In June 2017 the director sought financial advice and decided to place the company into Creditors’ Voluntary Liquidation on August 8, with myself and Ian Michael Rose being appointed joint liquidators.
“The company has made losses of around £39,750 with the majority of creditors being from the building trade.”