Having worked tirelessly to build my reputation, confidence, and knowledge in the hospitality sector, I decided that for the first time in my career I wanted to be my own boss. This resulted in me researching locations, investing time, significant effort and personal cost in opening two coffee shops. However, both locations were not going to operate in the usual coffee shop model, but would offer a different experience to its customers to differentiate themselves from my much larger competitors.
Both locations were trading successfully, profitably and began building a following within the local communities in which they operated and online. Life was good and for the very first time in my life, I owned two businesses trading successfully with a view to opening two new locations within the next 12 months.
Placing Both of My Hospitality Companies into Liquidation Due to the Covid-19 Pandemic
The impact the Covid-19 Pandemic ('C19') had on the country cannot be understated. The hospitality sector was completely decimated as the public were unable to move freely visit cafés, restaurants, or bars for many months. Attributable to C19 and the utterly devastating impact that it had on the country, I was left with no option, but to place both of my companies into liquidation.
I was lost, felt physically sick and very upset at having to place both of my companies into liquidation through no fault of my own. I had nurtured both companies into profitable businesses, and that had now all been cruelly taken away from me.
Intention of the Secretary of State ('SOS') to Disqualify and Sanction Me Financially
Struggling to deal with the turmoil of having to place both of my companies into liquidation, I was then dealt a further significant blow with the SOS writing to me confirming they had made the following determination:-
I be disqualified from acting as a director for a period of 12 years.
A Compensation Order be made against me personally in the sum of £49,946.20 plus £24,124.00 (across both of my companies) being a total of £74,070.20 to be repaid by me.
In a short space of time and having two successful businesses, I was now facing being disqualified for a period of 12 years, my reputation shattered and having to make payment of £74,070.20. For the first time in my life I was scared, had no idea of what to do and extremely frightened about not only my future, but how I was going to provide for my family. This placed a heavy burden on my mental/physical health as well as my marriage.
Instructing Gulshan at D & N Solicitors
I had no previous dealings with Gulshan Kumar ('Gulshan'). However, I had received positive recommendations from business associates. Therefore, I reached out and made contact with Gulshan. Gulshan immediately made me feel at ease and explained the entire process to me together with what options I had to defend my position. He engaged with the SOS and convinced them not to proceed with either disqualification or seeking payment from me in the sum of $2,500. £74,070.20.
After speaking with Gulshan, I became less scared and more confident in engaging with the SOS to defend my position, convincing them not to proceed and explaining why it was not in the public interest to disqualify me. Gulshan gave me clarity, explained in simple terms what I could do to limit my exposure and a strategy moving forward.
Engaging with the SOS
Gulshan set out a clear and concise pathway for me to deal with the SOS. This included me, Gulshan, my accountant responding to the SOS's enquiries explaining with supporting documentation why their findings in relation to my conduct were wrong. This included liaising with the SOS via telephone, emails, letters, meeting with the IS and providing detailed submissions.
Allowing Me to Take an Active Part in the Investigation
The above proved to be an invaluable process and enabled me to take an active and full part in the process, rather than Gulshan simply dealing with all matters. For the first time, I actually felt like I had a fighting chance of convincing the SOS not to proceed.
The Outcome – No Disqualification Ban or Financial Penalty to Be Paid by Me
I had resigned myself to being disqualified (potentially for a lesser period than the initial 12 years being sought by the SOS) and having to somehow pay a fine of £74,070.20. However, and somewhat to my surprise, the SOS confirmed that they were terminating their investigation and would not be seeking any Disqualification Ban or Compensation Order against me.
The Relief for Me and My Family
At the very best, I expected to be disqualified (maybe for a lesser period) and having to pay a heavy financial penalty. However, I am still in shock and cannot find the words to explain how grateful I am that did not happen.
I have always been immensely proud and therefore reluctant to seek and obtain help. However, this process has taught me that it does not make you weak nor vulnerable for seeking help, and in fact in my circumstances led to the SOS not proceeding.
I cannot thank Gulshan enough for his time, patience and his hard work in convincing the SOS not to proceed with their case against me. Gulshan thank you, not only from me, but my family also. I can now look to the future without fear, and I am excited about what it could hold. Thank you!
J. Phillips, Torquay