Katie Price's firm is struck off by government officials amid £22,000 debt - Dove Bulletin - Online News Bulletin

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Wednesday, 12 June 2019

Katie Price's firm is struck off by government officials amid £22,000 debt

Katie Price's firm is struck off by government officials amid £22,000 debt
Katie Price's business empire has suffered a fresh blow after one of her firms was struck off by government officials, six months after the star narrowly avoided bankruptcy.

The former glamour model, 41, had failed to file any accounts for ailing business KDC Trading Limited since 2017 and was warned in April this year the firm would be dissolved unless its books were received by Companies House.

Now the star has been told the deadline has passed and the firm will be broken up with any money left in its coffers will go to the Treasury.

The firm used to sell her equestrian and clothing lines but the most recent accounts on Companies House reveal there is unlikely to be any cash left in the business.

Books for the period ending April 2017 show debts of £22,000. In 2010 the firm had a bottom line of close to £500,000.

She is also being probed by the government over the collapse of another firm which sank with big debts.
Katie Price's firm is struck off by government officials amid £22,000 debt
Liquidators have been brought in to break up Jordan Trading Ltd which handled cash from a range of products including clothing and perfume lines.

The former model owes a total of £2.1 million. She was once said to be worth £40 million.

A liquidator's report into Jordan Trading shows that Katie took out a £154,000 loan from the firm before it went belly-up which she cannot repay and she also owes the tax man £192,000.

Now her conduct as the firm's sole director is being looked at by a government department.

And if any wrong-doing in the running of the outfit is discovered she risks being banned from being a company director for up to 15 years.

Liquidator Simon Thomas said in a report to Companies House: 'In accordance with the Company Directors Disqualification Act 1986 I would confirm that I have submitted a report on the conduct of the directors of the Company to the Department for Business Energy and Industrial Strategy.

'As this is a confidential report, I am not able to disclose the contents.'

He added that creditors were free to bring any relevant matters on the running of the business to him via letter.

Antoniya Mercer, a senior associate in company law at Manchester firm JMW Solicitors LLP, explained what the probe will cover.
Katie Price's firm is struck off by government officials amid £22,000 debt
She told Mailonline: 'Each liquidator of an insolvent company is required to submit a report to the Secretary of State for Business, Energy and Industrial Strategy of the conduct of each director of that company.

'There may be no unfit conduct or the liquidator may outline details of misconduct, which make the director unfit to be concerned in the management of companies generally.

'Examples of such misconduct include, taking unwarranted risks with creditors' money; breaches of commercial morality such as transactions defrauding creditors, misappropriations of the assets or money of the company, resulting in failure to pay debts or losses; undue/excessive remuneration; loans to the director for no benefit to the company.
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