Katie Price’s firm is STRUCK OFF by government officials amid £22,000 debt in latest blow to her business empire… six months after star narrowly avoided bankruptcy
Katie Price’s business empire has suffered a fresh blow after one of her firms was struck off by government officials, six months after the star narrowly avoided bankruptcy.
The former glamour model, 41, had failed to file any accounts for ailing business KDC Trading Limited since 2017 and was warned in April this year the firm would be dissolved unless its books were received by Companies House.
Now the star has been told the deadline has passed and the firm will be broken up with any money left in its coffers will go to the Treasury.
Another blow: Katie Price’s business empire has suffered a fresh blow after one of her firms was struck off by government officials, six months after the star narrowly avoided bankruptcy (pictured March 2019)
Financial woes: Katie, 41, had failed to file any accounts for ailing business KDC Trading Limited since 2017- the firm used to sell her equestrian line (above in 2009)
The firm used to sell her equestrian and clothing lines but the most recent accounts on Companies House reveal there is unlikely to be any cash left in the business.
Books for the period ending April 2017 show debts of £22,000. In 2010 the firm had a bottom line of close to £500,000.
She is also being probed by the government over the collapse of another firm which sank with big debts.
Liquidators have been brought in to break up Jordan Trading Ltd which handled cash from a range of products including clothing and perfume lines.
Warning: The star was warned in April this year the firm would be dissolved unless its books were received by Companies House (pictured March 2019) but the deadline passed
The former model owes a total of £2.1 million. She was once said to be worth £40 million.
A liquidator’s report into Jordan Trading shows that Katie took out a £154,000 loan from the firm before it went belly-up which she cannot repay and she also owes the tax man £192,000.
Now her conduct as the firm’s sole director is being looked at by a government department.
And if any wrong-doing in the running of the outfit is discovered she risks being banned from being a company director for up to 15 years.
Liquidator Simon Thomas said in a report to Companies House: ‘In accordance with the Company Directors Disqualification Act 1986 I would confirm that I have submitted a report on the conduct of the directors of the Company to the Department for Business Energy and Industrial Strategy.
Business mogul: Books for the period ending April 2017 show debts of £22,000. In 2010 the firm had a bottom line of close to £500,000 (pictured promoting KP Equestrian in 2009)
‘As this is a confidential report, I am not able to disclose the contents.’
He added that creditors were free to bring any relevant matters on the running of the business to him via letter.
Antoniya Mercer, a senior associate in company law at Manchester firm JMW Solicitors LLP, explained what the probe will cover.
She told Mailonline: ‘Each liquidator of an insolvent company is required to submit a report to the Secretary of State for Business, Energy and Industrial Strategy of the conduct of each director of that company.
‘There may be no unfit conduct or the liquidator may outline details of misconduct, which make the director unfit to be concerned in the management of companies generally.
‘Examples of such misconduct include, taking unwarranted risks with creditors’ money; breaches of commercial morality such as transactions defrauding creditors, misappropriations of the assets or money of the company, resulting in failure to pay debts or losses; undue/excessive remuneration; loans to the director for no benefit to the company.
Tough times: She is also being probed by the government over the collapse of another firm which sank with big debts- Jordan Trading Ltd (pictured May 2019)
‘The Insolvency Service on behalf of the Secretary of State will consider the report of unfitness together with any matters reported previously and other relevant information.
‘If the public interest and evidential tests are met, the case will be investigated and graded according to the level of public interest in taking enforcement action.
‘If following investigation, the Insolvency Service concludes that the allegations of unfitness can be proved and are sufficiently serious, it will prosecute disqualification proceedings through the Courts.
‘Defendants are given notice of intention to issue proceedings and that they may offer a voluntary disqualification undertaking. If the Defendant does not offer an undertaking, the claim will be issued and will progress to disposal either on an uncontested basis, or through full trial.
Over: The former model owes a total of £2.1 million. She was once said to be worth £40 million (pictured promoting KP Equestrian in 2009)
‘The minimum period of a disqualification order is two years and the maximum is 15 years. The length of period depends on the seriousness of the case.
‘It is a criminal offence if a person acts in contravention of a disqualification order. That person will also be personally liable for all of the debts of the company he/she is managing.’
Katie, who split from her third husband Kieran Hayler last year, avoided bankruptcy at a High Court hearing in December, when she was allowed to enter into the Individual Voluntary Arrangement, a deal to pay back some of her debts.
A close pal allegedly loaned the star £22,000 to bail her out.
The High Court was told that the petition to make her bankrupt had been dismissed. The reality star was not at the court for the hearing, which lasted less than two minutes.
Deputy Insolvency and Companies Court Judge Middleton said: ‘This case has been dismissed after the parties concerned reached an out of court agreement.
Court costs of £881 are to be paid in accordance with the terms of the IVO (Individual Voluntary Agreement).’
Outside court, a spokesman for HM Revenue & Customs (HMRC) added: ‘We are not the lead creditors in this case, but we are happy with the agreement. I can’t tell you who the other creditors are in this case at the minute.
‘We don’t have a specific date for the first payment and the amount has not been decided. Katie Price was not obliged to turn up to this court hearing today.’
Jordan Trading was set up in 2003 and at the height of her earning power ten years ago.
She’s been ordered to pay her creditors within four years or her nine-bedroom mansion will be forcibly put up for auction to cover the debts.
But she will only have to pay back 41 percent of what she actually owes — the equivalent of £856,358 — in monthly instalments
Woes: Katie avoided bankruptcy at a High Court hearing in December, when she was allowed to enter into the Individual Voluntary Arrangement, a deal to pay back some of her debts (pictured January 2019)
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