Crime

Drinks company wound up after falsifying accounts

The firm fraudulently improved its financial position to make a number of credit applications to lenders

Drinks company Liquor World has been wound up after being found to have falsified bank statements to obtain over £300,000 from lenders.

The company filed accounts during 2019 and 2020 that showed a “dramatic and unexplained” improvement to its financial position.

In turn, the retailer and wholesaler of alcoholic beverages used its improved position to make a number of applications to lenders for loans, asset finance, and invoice factoring finance.

Despite several of the finance applications being rejected, investigators found that the company had managed to secure over £300,000 in credit.

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Investigators were drawn to the attention of Liquor World after concerns were raised regarding the accuracy of its accounts.

David Hope, chief investigator at the Insolvency Service, said: “Liquor World has blatantly and cynically used false and misleading information to persuade lenders to advance funds to it resulting in those lenders suffering a significant financial loss.

“By acting swiftly in bringing winding up proceedings, we have prevented any further harm taking place at the hands of this company.”

Julie Tait and Stuart Preston of Grant Thornton have been appointed joint interim liquidators of the company.

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