Investigation exposes attempt to sidestep formal insolvency processes

A Manchester-based company, Davis Acquisitions Ltd, has been wound up in the public interest after an Insolvency Service investigation found it was being used as a front to carry out unlicensed insolvency activities.

The firm worked closely with Save Consultants Ltd, which was shut down in 2023 for offering unregulated insolvency services. Davis Acquisitions Ltd acted as the appointed director of 78 companies previously managed by Save Consultants Ltd, allowing business owners to avoid legitimate insolvency procedures, scrutiny of director conduct, and recovery actions by creditors.

Both companies promoted services promising to help directors “leave their debts behind” and transfer control of their businesses within 48 hours. In reality, these practices bypassed the lawful processes designed to protect creditors and ensure fair treatment for all parties.

Regulators take firm action to protect the public interest

Following the Insolvency Service’s investigation, Davis Acquisitions Ltd was ordered to be wound up by the High Court in Manchester on 30 September. Investigators found the company had used several addresses without permission, failed to respond to enquiries, and ignored official correspondence.

David Usher, Chief Investigator at the Insolvency Service, said Davis Acquisitions Ltd “was acting as a front to help company directors avoid their responsibilities while harming creditors.” He added that such behaviour undermines confidence in the UK’s insolvency system and that decisive action was taken to protect the public interest.

Only licensed insolvency practitioners can carry out insolvency work

This case serves as a reminder that insolvency work, such as acting as a liquidator or administrator, can only be undertaken by licensed insolvency practitioners such as Molly Monks M.I.P.A of Parker Walsh (IPNo:19830).

At Parker Walsh, licensed insolvency practitioner Molly Monks and the team ensure all insolvency procedures are handled lawfully, transparently, and with the highest professional standards, protecting both businesses and their stakeholders.

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