Mitul Gadhia, an award-winning estate agency owner in the Midlands, has liquidated a businesses to enable his main two operations – Whitegates and Taylors Property Services – to continue.
His Whitegates franchise has three branches including in Leicester and two of its satellite villages and employs some 30 staff. But Gadhia says problems began when he acquired local five-branch rival Taylors three years ago for an undisclosed sum with finance supplied by Barclays.
He says the high costs of this estate agency acquisition meant he concentrated his overall business within the Taylors Property Services operation and let Miresh Property Company, which he used to run a Martin & Co franchise prior to launching the Whitegates operation, become a shell.
This company had debt totalling £886,000 but assets of only £8,462 and therefore Gadhia has liquidated the firm leaving money owed to himself of £650,000 but also an HMRC bill of £231,000 which will now have to be written off.
“We’ve done everything above board and it’s a very genuine scenario so we are just waiting for the report to go across to the insolvency practitioner but we are pretty confident there will not be any challenges, as I stand to lose the most out of this.”
In 2017 Gadhia garnered much praise when he was named that year’s industry Rising Star aged just 27 years-old and praised by the judges for his entrepreneurial flair
Ghadia says that despite a booming market, trading has been tough. Leicester has been under a local lockdown for several months.