John Charcol's debts revealed
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Documents filed on Companies House reveal that John Charcol had liabilities of over £3.7m when it entered into voluntary liquidation earlier this year.
The mortgage brokerage was bought from administrators Grant Thornton in February by Towergate Financial.
It officially entered into voluntary liquidation on April 6 at which time it had outstanding liabilities of £3,726,834. The bulk of this debt was owed to Lloyds TSB Bank, which was owed just over £1.2m.
Towergate Financial bought the staff, assets, brand, customers and services of John Charcol when it entered into administration.
It also made arrangements so the brokerage’s customers were protected by professional indemnity insurance and did not suffer any loss.
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Readers' comments (5)
Anonymous | 26 Apr 2010 10:49 am
Is there not a capital adequacy issue that the FSA should have been on top of? Or did the FSA see this and 'forced' the sale through to prevent another high profile collapse.
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John Lacy | 26 Apr 2010 11:09 am
I know where you're coming from anonymous @10:49 but doesn't this prove once again that the FSA have one set of rules for the "big" players and much more stringent ones for the rest of us.
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John Brett | 26 Apr 2010 11:23 am
The idea is to become too big to fail.
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Anonymous | 26 Apr 2010 12:57 pm
Sadly you will find that this administration process is usually done to get out of rental agreements. So sad to say that the banks lose and the landlord loses also. I think it is a joke however that the FSA were not aware of this and that they allow firms to just walk away from their responsibilities.
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Anonymous | 26 Apr 2010 2:54 pm
Charcol were lucky to find a buyer - many, sadly were not and its the advisers who lost their commission during a very difficult time.
Its unfortunate John Garfield didnt mention the extent of their financial problems when I asked about their finances after he interviewed me 6 months ago for a job.
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