Aston Barclay in Carzam ‘ransom payment’
16 January 2023
Aston Barclay has been described as extracting a “ransom payment” in the administration of failed online retailer Carzam. The auction house was owed £9,182 plus VAT, and deducted this from £58,900 of car sales proceeds before remitting the balance to the administrators.
“Although this constitutes a ransom payment in the administration,” said administrators Evelyn Partners, “given the quantum and the associated professional costs of pursing this sum, it would not be economical to pursue Aston Barclay for payment.”
The administrators added they expect to declare a distribution to preferential creditors, but it is uncertain whether there will be sufficient funds to enable a dividend to unsecured creditors.
There are 59 employee claims as ordinary preferential creditors, worth £82,820. Secondary preferential creditors mainly include HMRC.
The administrators have received claims totalling £19m from 160 unsecured creditors.
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