Liquidators probing boss pay-outs at Oxfordshire pub company

The business ran two pubs in Oxfordshire before the limited company was put into liquidation in May last year.

Despite Sergeant and Holliday Pub Co Ltd’s collapse, both the Bottle and Glass Inn at Binfield Heath and Henley’s Hart Street Tavern remain trading under new ownership.

Liquidators at Begbies Traynor were appointed to settle the reported £1.5m worth of claims and debts the company had.

In an update on the insolvent company, liquidators have launched statutory investigations into funds withdrawn by directors before it went under.

The Bottle & Glass Inn. (Image: Tripadvisor / The Bottle & Glass Inn)

The liquidators said: “Following our initial investigation we identified matters for further investigation [including] further enquiries are being undertaken regarding funds withdrawn from the company by the directors prior to liquidation.”

Alongside this, a review of how significant liabilities to HMRC built up is taking place.

These enquiries may yet deliver recoveries but, at this stage, any eventual pay-out to creditors remains uncertain.

Certain specified debts owed to HMRC fall under the secondary preferential status, meaning HMRC will not entirely be at the front of the queue for getting its money back.

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Around £1m of the £1.5m of debts accrued by Sergeant and Holliday Pub Co’s debts were owed to HMRC, it was previously reported in past reports.

About £54,000 in unpaid business rates was owed to South Oxfordshire District Council and further sums due to banks, suppliers, contractors and other creditors.

The report details modest cash realisations and ongoing collection of deferred consideration from the sale of the pub business, with tens of thousands of pounds still outstanding.

Liquidators are also wrestling with a complex judgment debt against an individual subject to a civil restraint order, where enforcement costs may outweigh prospects of recovery.

“During the liquidation we became aware of a potential asset in the form of a judgment in the sum of £7,906 plus costs previously obtained by the company against an individual debtor,” joint liquidator Simon Lowes said in a report.

“The individual concerned has generated extensive correspondence, applications and procedural matters requiring review by the joint liquidators and their legal advisers.

“We also became aware that the individual is subject to a General Civil Restraint Order, which further evidences the complexity of the matter and the challenges associated with achieving a recovery.

“Notwithstanding the significant time and professional costs incurred in addressing these issues, no recoveries have been achieved to date.

“We continue to assess the proportionality of any further action having regard to the likely costs, prospects of recovery and the interests of creditors generally.”

The joint liquidators said they will continue their investigations and recovering money for creditors, with an update to be given in a year’s time.