Digital Direct

so who would pay the bill for the work that the Administrator does? Are they a secured creditor?
Under what category do staff come?
does it seem fair that these multi million pound blue chip companies are above staff.
 
As i say, they trade under the same group as Digital Direct and Hi-Fi Bitz. They are still by the the 2 same directors.
 
so who would pay the bill for the work that the Administrator does? Are they a secured creditor?
Under what category do staff come?
does it seem fair that these multi million pound blue chip companies are above staff.

the administrator gets paid first. when a company is under administration and keeps on trading, the payments to staff come from the administrator

it's that way, as otherwise administrators wouldn't do the job if they had to hope for payment as a creditor like everyone else

staff are otherwise just normal debtors, no preference to staff, even directors

usually banks and hmrc come first and then everyone else is lumped in together
 
I understand that there are rules in place to protect directors' abilities to set up in future business when a business fails for no fault of their own.

But surely there could be exceptions? Personally I don't think you should be allowed to set up a company with exactly the same name as a previous failure, with exactly the same directors, with the same assets, running from the same premises.

Lots of 'rogue trader' types seem to do this - surely it can't be that difficult to create rules to prevent the most common types of abuse of the system?
 
there is no law that holds them accountable for their previous failings!

Quite right too as failure alone is not a reason to stop people from running a company as if it were no-one would ever set up in business.

There are plenty of laws that will hold company directors to account if they do anything wrong or break the law and most people that do run companies fraudulently will end up being prosecuted or banned from holding future directorships
 
yet there is no law that holds them accountable for their previous failings!

As Ian said, directors who did anything that goes against the duties of a director as set out by law can be forbidden from being a director of another company.

Failing before can't be on it's own a reason not to be able to setup another business.
 
I am not suggesting that failing before should stop anybody from trying again to operate a successful business, the point I am making is that why have they been allowed to turn their back on previous debt [unsubstantiated figure removed by admin] and leave vulnerable self employed people to absorb their loss? As posted earlier, sole traders left being owed [unsubstantiated figure removed by admin] pounds for providing a credible service for years, they too are at risk of losing their own business. Yet because of some legal loop hole the direcors of the company that is being dissolved do not have any responsibility to reduce or settle the debt, despite having the finances in place to buy back the assets from the failed business, its just totally wrong i'm sorry :confused::confused:
 
As Ian said, directors who did anything that goes against the duties of a director as set out by law can be forbidden from being a director of another company.

Failing before can't be on it's own a reason not to be able to setup another business.

As a sub-contractor, I've worked for a few companies that have gone bust, resulting in me not getting paid.

Every time, I've known they were in serious trouble, as the wages start to come late.

Everybody on the job knows they are struggling.
Except the directors, every time :rolleyes:
 
As Ian said, directors who did anything that goes against the duties of a director as set out by law can be forbidden from being a director of another company.

Failing before can't be on it's own a reason not to be able to setup another business.

But as mentioned, their ability to set up so quickly after failing suggests an ability to raise capital or credit. If so, why wasn't that used to help keep the previous, identical business afloat? What magic formula do they have this time around for success, and how have they only just realised it?
 
What magic formula do they have this time around for success, and how have they only just realised it?

Us outsiders can't answer that question as we don't know enough about the business model. Often there is no magic formula but one hopes that people have learned by any mistakes that they have made so that future ventures are more likely to be successful.

Americans take a different view to us as they feel that one can't be a successful businessman without a failure behind them.

One of my clients went bust last week as one of their customers went bust owing them £240,000 meaning that they couldn't pay their own bills. They will be restarting and one hopes that they will have learned the value of a spread of customers, or at least to have credit insurance in place
 
why have they been allowed to turn their back on previous debt [unsubstantiated figure removed by admin] and leave vulnerable self employed people to absorb their loss? As posted earlier, sole traders left being owed [unsubstantiated figure removed by admin] pounds for providing a credible service for years, they too are at risk of losing their own business. Yet because of some legal loop hole the direcors of the company that is being dissolved do not have any responsibility to reduce or settle the debt, despite having the finances in place to buy back the assets from the failed business, its just totally wrong i'm sorry :confused::confused:

It's not a legal loop hole, it's the whole basis of having a Limited company: your risks are limited to the capital in the company.

As a supplier it is up to you to decide how much credit (if any) you will give your customers. If their capital is £10, would you seriously consider giving them £10k credit?

In the example Ian gave, would you be happy for a company director to be personally responsible for the debts of a company that went under because a customer didn't pay them?
Most directors aren't trying everyday to sabotage their own business I would think.

As a sub-contractor, I've worked for a few companies that have gone bust, resulting in me not getting paid.

Every time, I've known they were in serious trouble, as the wages start to come late.

Everybody on the job knows they are struggling.
Except the directors, every time :rolleyes:

I would think they know they're struggling and are still trying to find solutions so they don't go under and leave you not being paid.

Of course there's always the less "honest" ones.

But as mentioned, their ability to set up so quickly after failing suggests an ability to raise capital or credit. If so, why wasn't that used to help keep the previous, identical business afloat? What magic formula do they have this time around for success, and how have they only just realised it?

There are many reasons why a business can fail. If it's past being worth salvaging then you go and start again rather than get deeper into problems.
It's not nice for the people you owe money to but everyone's got the same rights, duties and risks.

People who do what these guys have done may well find themselves unable to get suppliers who trust them and/or give them any credit so it's not all that easy afterwards.
 
Hmmmm now i realise companys go bust and I realise that this should not deter people in starting up new business, learning from your mistakes is one of lifes challenges.

But this company was still taking orders from customers knowing full well that they could not honour those orders and for those who didnt use a credit card and are now out of pocket its not the most comforting of feelings.

Im aware of the rules from this thread but the rules should be changed because plain and simply these [ comment removed ]. Im also hoping that there are more of these threads on the internet and people dont shop there and they go bust again [ comment removed ].
 
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But this company was still taking orders from customers knowing full well that they could not honour those orders and for those who didnt use a credit card and are now out of pocket its not the most comforting of feelings.

That is one thing that the Administrators will look into and if it can be proved that they took money from customers when they knew that they couldn't supply any goods then there could well be grounds for prosecution.
 
Thanks for your comments and support Kopchoir :smashin:

"In the example Ian gave, would you be happy for a company director to be personally responsible for the debts of a company that went under because a customer didn't pay them?
Most directors aren't trying everyday to sabotage their own business I would think"


That is a totally different scenario, Digital Direct were a retail company and did not offer any type of credit at all, therefore no risk involved. They were reliant on credit facilities to run the business.

[ speculation removed. please read the forum rules regarding what you are allowed to say about companies ]

"There are many reasons why a business can fail. If it's past being worth salvaging then you go and start again rather than get deeper into problems."

Perhaps this should have happened in October 2009 when the bank were called in because sales forecasts were down and cashflow was heavily reduced, least then it would have saved plunging deeper and deeper into debt....
 
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The forum rules are quite explicit about what one is allowed and not allowed to say in circumstances like this.

If anyone else decides to make unsubstantiated defamatory statements then this thread will be summarily deleted.

There will be no further warnings
 
That is a totally different scenario, Digital Direct were a retail company and did not offer any type of credit at all, therefore no risk involved. They were reliant on credit facilities to run the business.

Perhaps this should have happened in October 2009 when the bank were called in because sales forecasts were down and cashflow was heavily reduced, least then it would have saved plunging deeper and deeper into debt....

I wasn't commenting in the Digital Direct case in particular given I have no knowledge of what happened and when. It was more a general comment about limited companies and their directors.

Regarding credit, that's one thing that will make an otherwise profitable company go bust.
When the credit crunch started, there were multiple reports of companies that where profitable and without any issue that suddenly found themselves in terrible trouble because the bank removed their overdraft overnight, or suppliers would remove credit facilities etc. This is probably caused my credit insurance companies being mega over cautious all of a sudden and removing cover on many businesses.

If your cash flow goes, what do you do?
 
Jenn,

I would think they know they're struggling and are still trying to find solutions so they don't go under and leave you not being paid.

You're extremely naive to say the least imo.

Of course there's always the less "honest" ones.

100% record in my experience.
Money moved into trusts, pension schemes etc, I've seen it all.
And I won't even mention the companies that I have worked for that have been forced to go bust by bigger companies, through delayed payment or highly dubious "deductions" (as high as 30%) after the job has been completed.
Trust me, there is no honour involved in business these days.

I've always worked on "my word is my bond" principles, even if it means me losing out.
It's why I wouldn't even contemplate starting my own company now.


Anyway, I've had a mail from the digitaldirect ebay jobby, apologising for the delay (because they've just taken over) asking me if I want to complete the deal.

It's only a few quid and I'm willing to give anyone a second chance, so I've said yes.
 
Jenn,



You're extremely naive to say the least imo.



100% record in my experience.
Money moved into trusts, pension schemes etc, I've seen it all.
And I won't even mention the companies that I have worked for that have been forced to go bust by bigger companies, through delayed payment or highly dubious "deductions" (as high as 30%) after the job has been completed.
Trust me, there is no honour involved in business these days.

I've always worked on "my word is my bond" principles, even if it means me losing out.
It's why I wouldn't even contemplate starting my own company now.


Anyway, I've had a mail from the digitaldirect ebay jobby, apologising for the delay (because they've just taken over) asking me if I want to complete the deal.

It's only a few quid and I'm willing to give anyone a second chance, so I've said yes.

Well I have my own business and I know quite a few other people who do too and I can guarantee you that having your business go under is the last thing people want.

It's the people who don't give a crap about suppliers who give up easily.
Again I'm not commenting about Digital Direct here, they could be some of the rotten ones.

I know some people with a business who fought so long and hard to recover after a huge unpaid bill, they got themselves in financial trouble by throwing their own money into it and even then it didn't save the company. I'll be damned if they're going to be called "names" because they didn't just give up months earlier.
And you know why they fought? Because they too refused to "not keep their word" and put others into trouble.
 
Well I have my own business and I know quite a few other people who do too and I can guarantee you that having your business go under is the last thing people want.

It's the people who don't give a crap about suppliers who give up easily.
Again I'm not commenting about Digital Direct here, they could be some of the rotten ones.

I know some people with a business who fought so long and hard to recover after a huge unpaid bill, they got themselves in financial trouble by throwing their own money into it and even then it didn't save the company. I'll be damned if they're going to be called "names" because they didn't just give up months earlier.
And you know why they fought? Because they too refused to "not keep their word" and put others into trouble.

In my experience you're a minority, in which case I can only say "fair play" to you :smashin:
 
In my experience you're a minority, in which case I can only say "fair play" to you :smashin:

It wasn't me but people I know.
Had it been me I wouldn't have put myself personnally in financial trouble to try and save a company that had so much "against it".

It's not nice for the suppliers but they don't try and help either so...
You try your best, if you fail you fail, it doesn't make you a bad person. Like I say, only the ones who never try never fail.

But to get back on topic, setting up a new business months in advance ready to buy out the assets of the old one while keeping the other business running to the ground, knowing that staff won't be paid and customers are still giving you money for stuff you know you don't have is not the kind of actions I would defend.
 
Anyway, I've had a mail from the digitaldirect ebay jobby, apologising for the delay (because they've just taken over) asking me if I want to complete the deal.

It's only a few quid and I'm willing to give anyone a second chance, so I've said yes.

Further to this, I had a mail from the company saying my item would be sent yesterday and be delivered tomorrow.

It arrived today :smashin:
Totally as described and a perfect deal.

Better still, is that it seems to have been on trust, because after my refund, they haven't been paid yet.

Hopefully the new owners will be ok :smashin:

I guess I now have to find out how to revise the feedback I left.
 
I guess I now have to find out how to revise the feedback I left.

You have to go in the feedback forum which is in the Community section (top right buttons) and there's a follow up to feedback left.

Not sure you can change the negative though unless the seller asks you for a feedback revision.
 
my Toshiba tv that i got in Jan 2009 has a fault so i emailed digital direct to get it repaired to which they replied with:

Code:
Can you please contact Toshiba customer service on 08448560730 as they arrange repairs to their TVs.

Please note you are now outside the manufacturers original 12 months warranty and unfortunately the company you bought the TV and therefore the extended warranty from has gone into receivership earlier this year so your extended warranty is null and void.

Can I suggest that when you contact Toshiba you do not indicate this warranty, or they may refer you back to your retailer, who does not exist. Since this is a common fault with Toshiba TVs they may repair it under their warranty.

Thank you

James Whaite
J Whaite (Returns manager)
Elitemark Ltd
Telephone 01204 414131
Fax 0845 3453790
EMAIL [email][email protected][/email]


I don't know when they went into receivership, there's no info on their site about this. Toshiba refused to repair my tv for free saying that "we decide whats a design flaw not the internet" when i pointed out that lots of people on the internet have the same fault with my model on the internet therefore its a design flaw. Its the power button btw, it no longer works so i have to put it into standby all the time, the spring mechanism in the button has broken i.e design flaw.

Please change this topic title to "Digital Direct gone into receivership" as there are 0 results on google for this.
 

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