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Former MotivAction Group wound up with more than £750k of debt

The company formerly known as MotivAction Group owed £766k in debts, including £418k to the taxman

The company formerly known as The MotivAction Group was wound up with more than £750k of unsecured creditors left unpaid, it has been revealed.

The MotivAction Group entered into a Company Voluntary Arrangement (CVA) to clear £766k of debt in 2014 and Tim Waygood, who founded MotivAction, stepped back into directly running the business.

The trading name MotivAction and its staff were taken on by MTravel Solutions Ltd. This company was given a £100k cash injection and taken on by former staff.

At this point the original company, The MotivAction Group, changed its name to DBKOFish Events.

However, DBKOFish Events failed to keep up with its CVA payments and a winding up order was issued in February this year and Waygood left the board in March.

Waygood said: “It was loyal team of committed people who ensured that there was not a complete collapse and that a smaller agency survived and client events were all delivered in 2015, the name MotivAction survives and MTravel continues to deliver international events and programmes as well as MotivAction events in the UK.”

The CVA details, which have just been filed at Companies House, reveal that The MotivAction Group paid £55k in the first year of the CVA, £4k in the second year and nothing thereafter.

The report said: “The company had suffered a major decline in turnover due to factors not envisaged when the proposals were first put to creditors. The director had advised that in its last 12 months of trading the majority of clients which made up its core business ceased trading with the company, this in turn led to serious cash flow problems and the company was unable to pay the reduced contributions that had been approved by creditors on the 2 March 2015 on time resulting in a breach of the CVA that cannot be remedied.”

During the arrangement, unsecured creditor claims were made totalling £766k, of which £418k was a provisional claim from HM Revenue & Customs. The report reveals that no unsecured creditors will be paid as all funds realised have already been used or allocated to defray the expenses of the CVA.

A preferential claim of £5k was paid to former employees for unpaid wages and holiday pay.

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