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  • HMO & Multi-Lets

    Major South Yorkshire Builder Going Bust

    Convert Property Limited (Company Number 10919773) has just gone into voluntary liquidation after less than 2 years of trading.

    The company has done a lot of HMOs in the South Yorkshire area, in particular Doncaster.

    The company was run like a Ponzi scheme whereby it relied on getting money in from new clients to pay for existing workload. The quality of the work suffered the longer they were in business and they developed a reputation for not returning to projects when there were problems such as leaking ensuites (of which there were many).

    A new company was set up in November last year namely Complete Plumbing & Property Limited (Company Number 11692168). This company traded alongside Convert and took on projects that Convert would normally have done.

    It is the classic case of setting up a new company knowing full well that the original company will be allowed to be badly managed and go bust. No doubt in around 2 years time another company will be set up when the Ponzi scheme at Complete eventually fails. And so the cycle will continue.

    Please advise anyone you know to spread the word to avoid giving any business to Complete.

    I will be doing my best with the liquidator to make sure he knows what has happened and to hopefully get sanctions implemented against the directors.

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    Fairly common in construction I am afraid, they take out a lot of trade supplier credit and rely on winning new work to pay the debts. 

    Often these companies price cheap to win work and get market share fast rather than slowly through building a good reputation. 

    It's safer to manage the work yourself and employ individual trades, otherwise pay more for a federation of master builders firm as they are checked as part of retaining membership on quality of work and I believe financial stability.
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    It probably also reflects the changes in the housing market and the amount of money available for investment and purchases.

    A small developer working near me recently went into administration and their projects repossessed ( bank is now employing them to finish the works), their downfall was being unable to sell off-plan units, wether that was a price led or market conditions misjudgement, i don’t know . Though some flats they were marketing seemed expensive to me.
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