Don’t allow unscrupulous businesses go into liquidation and immediately start another....

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Don’t allow unscrupulous businesses go into liquidation and immediately start another business of the same nature, using the old company intellectual assets!

Time for the Government to change the law and for Action Fraud to identify sufficient leads that would result in a successful criminal investigation!

FCA – please commence an investigation…

Please help us fight for JUSTICE!

FHU Szach, Aleksandra Gwiazda along with her husband provided a variety of services including clothing alterations to DW Clothing Limited, t/as A Suit That Fits, which specialises in affordable bespoke tailoring. DW Clothing has been put into liquidation leaving £2m of unsecured debt, including an “intercompany” debt of £1.25 million to DKSG Bespoke, though the website remains trading under a new entity called Tailored Franchises LTD and running by the same people.

FHU Szach Aleksandra Gwiazda is one of the DW Clothing creditors that was left out of pocket for the services they provided and jobless… as this unscrupulous behaviour put her out of business through no fault of her own. In addition, employees of the company run by Aleksandra suffer as well as the company was forced to stop trading, meaning all the qualified tailors are left without work.

The total debt sum owned by DW Clothing Limited to FHU Szach Aleksandra Gwiazda is £16,513.03.

This has a huge impact on Aleksandra, whose husband suddenly passed away on 07/10/2017 and since then she continued the cooperation with DW Clothing on her own. After providing many lies, dishonesty and next-to-no communication, DW Clothing stopped paying for the services in November 2017, leaving Aleksandra suffering from substantial financial damages and tremendous emotional stress.

There are reasonable grounds to suspect that DW Clothing caused significant harm to the company run by Aleksandra Gwiazda through planned activities, using her business company's assets as well as that a serious abuse such as significant misconduct was done by the owners of DW Clothing.

It should be noted that:

  • Tailored Franchises was incorporated in October 2017
  • DKSG Bespoke Limited, “intercompany” is run by the directors of DW Clothing
  • DW Clothing broke the law of not being transparent to their suppliers. The directors even knowing they would not be able to pay for the work done, they still used services of their suppliers.
  • What happened to the money raised from private investors by A Suit That Fits on the crowdfunding site - the last one completed in November 2017 with the amount of more than £400,000 and the previous of £876,700 when investors were told that the company planned to sell itself by 2020, making a “return of nine times”? That is over £1,200,000…

https://asuitthatfits.envestry.com/deals/1391 - the deal is currently under review…

https://www.crowdcube.com/investment/a-suit-that-fits-19582

  • Rob Murray Brown, an equity crowdfunding consultant, told The Times that the revelation led to “some serious questions to be asked about [whether the directors] have realigned the assets . . . and placed some of them into a new company in which Crowdcube investors have no ownership.”
  • It is recommended you read the article by James Hurley, "Tailor proves to be a bad fit for crowd left £1.5m out of pocket" as well as this blog post by the Equity Crowd Funding Experts, "DW Clothing collapse throws up some interesting patterns", who produced an excoriating assessment on the history of ASTF, DW Clothing, DSKG and Tailored Franchises … well said Enough is enough!
  • It is incredible that a new company with no right to the assets have taken DW Clothing without any investigation! According to Rob Murray Brown “there was no comment from the Administrator. Well I’m not surprised - he seems to be struggling to get at the truth. The fact that really matters here is that DW Clothing owned the brand and the logo for A Suit that Fits - trade mark EU011657781. This TM was registered in 2013 at Keith Watson's given address. According to the UK TM office, it is still owned by DW Clothing. So the Administrator can sell it. What’s more, all of the SM that Tailored Franchises is now using to sell suits, is still owned by DW Clothing. We know this because their pages were started in 2006 when ASTF was the name of the company. DW Clothing bought all of the assets of ASTF, so they own the SM and all its mailing list etc. That should be a valuable asset?”

This loophole in the law is not new, it has been going on for years and the powers that be just turn a blind eye to it. It has to be stopped…

On 3 December 2012, DW Clothing Ltd purchased the business and assets of ASTF Limited a company which was a UK supplier of made to measure suits which were manufactured in Nepal. ASTF Limited used the trading name ‘a suit that fits’ and used the website of asuitthatfits.com. “In December 2012, however, ASTF Limited was forced to call in the administrators, after HM Revenue & Customs finally lost patience over an unpaid tax bill. Bailiffs were appointed by the tax authority to repossess sewing machines and other equipment at the company’s London headquarters, in an attempt to recover the £96,000 debt. A Suit That Fits was rescued in a way that saved most of its employee’s jobs. But, employees and suit wearers’ aside, not everyone has welcomed the move. Pre-packaged administration deals, such as this, have attracted controversy because of the effect they have on suppliers and competitors. Under a pre-pack, a company goes into a formal insolvency process, but can emerge days later under new ownership in pre-arranged a sale, having shed liabilities but retained assets – leaving creditors worse off. In the case of A Suit That Fits, dozens of suppliers were left out of pocket, including the company’s bank RBS, which was owed just over £200,000 at the time of the administration. Competitors felt aggrieved, too. The owner of a rival tailoring business, who asked remain anonymous, told the Financial Times he was angry that A Suit That Fits had been rescued, after it had driven prices down in the industry by pursuing an unsustainable business model.” [Financial Times, Pre-pack administration doesn’t suit all, Jonathan Moules, Enterprise Correspondent, February 4, 2013]

Why the creditors should be left out of pocket for the services they supplied only because unscrupulous businesses are allowed to go into liquidation and immediately start another business of the same nature, using all the old company intellectual assets!?

We ask the Government, Action Fraud and the FCA to conduct a thorough investigation in order to ensure that the directors of DW Clothing Limited and its related companies, who are absolutely responsible for their misconducts, to be held accountable for their wrongdoings.    

Please help us fight for JUSTICE!

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Thank you!



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