Liquidation proceedings have officially begun at UK Equipment Direct following a meeting of creditors in Manchester on Friday.
Alex Kachani, a specialist in insolvency and corporate recovery with Crawfords Accountants in Salford, was appointed as the liquidator.
He confirmed to Catering Insight that he had now “taken over the running of the company and any investigation that follows”.
Three creditors attended the meeting on Friday to approve the nomination of the liquidator for the fallen catering equipment distributor, whose registered address is at the Longford Trading Estate in Manchester.
It is understood that there are around 50 creditors in total. Kachani declined to reveal the value of the debts.
He said: “[My role] is to realise assets and deal with any matters that require investigation. If there are any recoveries then the beneficiary is the creditors.”
When asked what happens to the directors of the company now, he said: “They have to be looked at. I have a statutory obligation to look at the conduct of all directors and former directors.”
The length of the liquidation process tends to depend on factors such as the nature of the assets and the complexity of the case.
Once completed the company will be dissolved and cease to exist.