A Welsh engineering firm has won $16.8 million AUD in a lawsuit against the British government after a spelling error in their records, mistakenly stating that the company was liquidated, led to the collapse of the 124-year old family business.

Taylor & Sons was mistaken for liquidated firm Taylor & Son Ltd by government agency Companies House, which acts as the registrar for all companies in the United Kingdom.

For the five-generation family business, this had a devastating impact on both their corporate and personal solvencies. The error on the record was corrected within three days, however, Companies House had already sold the details to credit reference agencies and the misinformation had spread like wildfire. All 3,000 of Taylor & Sons’ suppliers cancelled orders, credit from suppliers was withdrawn, equipment was taken off site and contracts were lost. Eventually the firm did in fact enter into administration, and was dissolved in 2014.

The need to file for bankruptcy, liquidation or voluntary administration can arise due to unforeseen circumstances, although not all are as extreme or sudden as the case of Taylor & Sons.

The Australian Securities and Investments Commission’s first quarterly insolvency statistics for the 2014-15 financial year shows a rise of 7.0% in companies entering external administration. Compared to the last quarter, court liquidations were up 23.3%; receiverships were up 15.5% and voluntary administrations up 6.6%.

Statistics also show that corporate insolvency can lead to personal insolvency, and to the subsequent need to file for bankruptcy or explore bankruptcy alternatives. If you or your company are facing insolvency, CRS Insolvency Services can help. Our team of professional and licensed insolvency practitioners are specialists in all areas of debt management and can help you through every step of the recovery process.

For free expert advice, or to find out more about our services, call us today on 1800 210 073.