Property renting company Avenue Lettings has gone bust with estimated debts of over £48,000.
Stirling firm TDC Solutions has been appointed as liquidator to wrap up the affairs of the Falkirk business which hit financial trouble at the start of the year.
It is understood 61 creditors have been warned they have little chance of ever seeing their cash because the company’s assets, including office furniture and a personalised car number plate, have been valued at just £1250.
Liquidator Kevin McLeod said the owner of the failed business, Linda Newbigging, had contacted TDC at the start of the month. He said: “She explained the financial position with Avenue Lettings and, after taking our advice, placed the company in liquidation on May 9. A meeting of creditors was held and my next step is to fulfil the duties of the liquidator and realise the assets of the company to pay back the creditors if possible. Given it has next to no assets the likelyhood of a dividend is very unlikely.”
In February The Falkirk Herald reported buy-to-let landlords were worried their rent money was in danger after Avenue Lettings failed to pay it into their bank accounts on time.
Office manager Colin Robertson, who is understood to be Mrs Newbigging’s brother, blamed “banking issues” for the delays and promised outstanding accounts would be paid “within days”.
This week a lucky few were able to confirm their bills had been settled in full before the business collapsed - but others admitted they had not been so lucky.
David Sneddon said: “It cost me money to hire a lawyer to deal with this but I eventually got back the £3400 I was owed.”
Michael Selwood narrowly avoided a financial loss. He said: “They paid me the £300 I was due on March 6. I got out just in time.”
Others are out of pocket.
David McCallan said: “My son is due nearly £3000 but when I contacted the liquidator on his behalf was told he is one of 61 creditors owed an estimated £48,209 while the estimated assets are £1250. There’s obviously no chance he will ever see his money.”
Stuart Dunlop said: “There is nothing left in the company and I’ve lost a four-figure sum as a result. Avenue Lettings did not look after my interests they simply took my money.”
Stephen Combe said: “As a result of their failings I’m over £1000 out of pocket and have little choice but to write it off.”
Businessman James MacDonald, who was hired to carry out maintenance work, said: “I got the letter but didn’t go to the meeting. What was the point? I only have one outstanding invoice with them but will still lose a three-figure sum. As someone who tries to be honest and up front with my customers, Avenue Lettings has let me and a lot of other people down very badly.”
Tradesman Ian Graham said: “For a one-man business I’ve taken a big hit, but there’s no money so what can I do. Taking them to court would only add to my costs so I’m just going to walk away and put it down to experience.”
The Falkirk Herald traced Mrs Newbigging to the semi-detached home she shares with her husband in Reddingmuirhead. She refused to be interviewed and expressed anger her address had been made known.
Before closing her front door she said: “The business is in the hands of the liquidator. You will have to speak to Kevin. I have nothing to say about all the lies that have been written about me.”