John Charcol says debt left behind was bosses’

The £3.7m in liabilities that John Charcol left behind when it went into liquidation was owed to the company’s directors, according to the brokerage.

Documents filed at Companies House last week reveal that it officially entered into 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 – just over £1.2m.

But a spokesman for John Char-col says the debt to Lloyds TSB has been repaid and the rest of the losses were investments made by directors John Garfield, Jon Moulton, Charles Wishart and Ian Darby.

The brokerage was bought from administrator Grant Thornton in February by Towergate Financial, which purchased the staff, assets, brand, customers and services.

All staff and directors moved to Towergate Financial as part of the deal.

Arrangements were also made to ensure the brokerage’s clients were protected by professional indemnity insurance and did not suffer any loss.

At the time Ian Darby, chief executive officer of Towergate, did not reveal what liabilities the brokerage had left, nor how much it paid to acquire the firm.