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Dozens Of Companies At Risk As £15m Debts Rock Firms

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http://www.thestar.co.uk/news/Dozens-of-co...risk.4896156.jp

LIQUIDATORS have been called in to Sheffield property business Merlin Estates - which has gone bust leaving debts of up to £15 million and putting dozens of small city companies at risk.

The receivers were called after creditors applied to have Merlin put into compulsory liquidation. Spiralling debts have been left unpaid for months.

The company had a portfolio of 500 properties and has let flats and developed several high-profile buildings in the city including student flats on Victoria Street.

But it has left up to 300 angry creditors - including surveyors, architects, steelworkers, scaffolders and other suppliers - out of pocket.

A meeting of Merlin Estates' creditors yesterday heard the company had estimated unsecured debts of up to £15 million - but the real figure could be as high as £21 million.

One plumber who is owed £5,000 by the Crookes-based company said: "It nearly sent us under. The money we were owed we were saving for our tax bill, and now we've got to find it.

"We nearly went bust ourselves but managed to turn it around through our own hard work."

Another contractor told The Star the firm he worked for was owed £130,000. Lack of payment has resulted in 20 staff being laid off and forced the business into liquidation.

The man, who didn't want to be named, said his was not the only firm to be affected.

He said: "Everyone is going bust. Small Sheffield businesses are being forced to close because of it."

Another company said the £160,000 it was owed had "wiped out" 25 years' work.

Merlin Estates, run by Mike and Deirdre Boulding, claims it has no assets apart from a £4,000 Seat car and some furniture.

But creditors have questioned this.

Insolvency examiner Philip Bankcroft said: "We will carry out an investigation of the conduct of the company. There is a question about the disposal of assets."

Mr Boulding, aged 65, is listed as a director of 38 companies including Merlin Estates Management Ltd, while Deirdre Boulding, 59, is a director of one.

Creditors yesterday appointed liquidators Chantry Vellacott to try to trace and divide the company's assets.

I like the fact they claim they have no assets.

Failure like this clearly has a knock on effect and takes out other local businesses as well.

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At what point do you stop dealing with a company? When it owes you a months money? £10k? £20k? Do you really wait til you're owed over £100k?

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Is this a wake-up call to the big builders, I wonder? How big was Merlin Estates?

500 properties (flats likely) apparently, so that's 500 BTL mortgages to be redeemed and the banks to take a haircut on every one at auction.

Will the Wilsons be next with their large portfolio ???

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I reckon things are going to get nasty soon.

Lots of contractors (myself included) are owed money, with little prospect of ever seeing the money. Companies are not getting paid, so are not paying invoices - vicious circle.

The problem is that the bigger boys go bust, claiming they have no assets, leaving a load of creditors with unpaid debts facing the prospect of bankruptcy.

The pyramid is collapsing.

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I think the take home message for tradesman and small businesses is that it is only worth dealing with BTL type businesses, no matter how big, if you get money up front.

We all need to pass this on to everyone we know.

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I have actually concluded, if you have the finances to do so, that the thing to do now is to simply reign in all spending and if you are a self-employed contractor to actually stop working. Yep, drastic I know and only possible if you have a big wad of cash savings but the costs of working and then not being paid are potentially enormous.

I work in IT and most of the work is in the SE. On a contract it would be normal to lease a flat but with contractors being terminated every day now anyone signing a lease for a rental where they work is potentially nuts IMPO. With contractors paid on a monthly basis you could end up with sizeable outgoings, working and then not being paid. This can happen in the good times let alone now.

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Merlin Estates are owned by Michael Boulding and his wife Deidrie. They operated as Boulding Industrial Supplies near Atlas Works on Carlisle Street in the 1980s and went bust there. They owed me £180 - so big deal! I learned from that, the bankrupcy papers later showed they owed nearly a million then which was huge in the 1980s. They avoided losing everything by putting things in her name, then they bought Castle Dyke House on Ringinglow Road, the place thet Naseem Hamed bought. They sold it to him. They then bought Beauchief Hall which was sold on, possibly to that other famous Sheffield bankrupt Hichcliffe! Michael Boulding's brother is Tom Boulding the landlord of Fagans pub on Broad Lane. It faces the now defunct development accross the road, funny old world .......

http://www.sheffieldforum.co.uk/showthread.php?p=3916123

How do these fvcking scum sleep at night?

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Merlin Estates are owned by Michael Boulding and his wife Deidrie. They operated as Boulding Industrial Supplies near Atlas Works on Carlisle Street in the 1980s and went bust there. They owed me £180 - so big deal! I learned from that, the bankrupcy papers later showed they owed nearly a million then which was huge in the 1980s. They avoided losing everything by putting things in her name, then they bought Castle Dyke House on Ringinglow Road, the place thet Naseem Hamed bought. They sold it to him. They then bought Beauchief Hall which was sold on, possibly to that other famous Sheffield bankrupt Hichcliffe! Michael Boulding's brother is Tom Boulding the landlord of Fagans pub on Broad Lane. It faces the now defunct development accross the road, funny old world .......

http://www.sheffieldforum.co.uk/showthread.php?p=3916123

How do these fvcking scum sleep at night?

They probably sleep very well. You are making the fatally flawed assumption that they have a conscience.

It's the poor sods they rip off who now have insomnia.

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They probably sleep very well. You are making the fatally flawed assumption that they have a conscience.

It's the poor sods they rip off who now have insomnia.

It's always the ones who are owed money that suffer. The bankrupts just get to walk off into the sunset.

And if your a banking CEO you get to keep hundreds of millions, whilst the taxpayer clears up the mess.

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  • 284 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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