Aberdeenshire couple who owe customers almost £100,000 banned from running businesses

A couple who owe customers almost £100,000 from their furniture firm have been banned from becoming company directors.

George and Williamina Hay were directors of furniture retailer DWH Trading Ltd in Aberdeenshire, which sold adjustable beds and chairs, mostly to elderly and vulnerable customers.

The company was in financial trouble in April 2023, but the husband and wife duo took 55 more orders, most of which were not even placed with their suppliers.

They sold the items from their home in Aberdeenshire and took orders and payments from customers six months before entering liquidation.

A pensioner from Stonehaven paid a £2,000 deposit to the company for an adjustable chair, which was never ordered from the manufacturer.

A customer from a village in west Aberdeenshire paid a £9,000 deposit for furniture which was never delivered. Customers from areas such as Dundee and Elgin also lost out.

Both have been disqualified as company directors following investigations by the Insolvency Service.

The firm was established in March 2021 but had serious cash flow issues within two years.

At the start of April 2023, DWH Trading’s bank balance stood at less than £6,000 and the company had no other non-cash assets.

The company also had 13 outstanding orders from customers who had paid them £27,250.

DWH Trading had not ordered the goods from its suppliers and the orders remained outstanding at liquidation.

42 of the 55 further orders taken with a total value of £69,750 were not placed with the company’s suppliers.

The company owed a total of £143,340 to its creditors in liquidation.

Insolvency Service investigators found that at least £97,000 of this was owed to customers for stock which it did not order.

The secretary of state for business and trade accepted disqualification undertakings from the pair, and their bans both started on Monday, March 3.

George Hay, 65, of Greenacres Crescent, Peterhead, was disqualified as a company director for seven years, while Williamina Hay, 61, of the same address, was also banned for seven years.

The undertakings prevent them from being involved in the promotion, formation or management of a company, without the permission of the court.

Mike Smith, Chief Investigator at the Insolvency Service, said: “George and Williamina Hay both took orders from customers in the six months before their company went into liquidation, most of which they knew would not be fulfilled.

“Most of the customers they took these orders from were elderly and vulnerable.

“Both George and Williamina Hay have fallen significantly short of the standards we expect of company directors which is why they have now been disqualified until March 2032.”