Estate agent chain Sanderson Young’s administration period has been extended as insolvency specialists attempt to chase down the company’s former owner to claim back more than £235,000.
Sanderson Young entered administration last September after it was served a winding-up notice by HMRC for failing to pay a tax bill.
When it collapsed the company owed nearly £1m to its creditors, including £573,000 in unpaid taxes.
The figure also included an outstanding director’s loan account, overdrawn to the tune of £235,671, which had been used by the firm’s previous owner Duncan Young.
Nearly a year on, the company’s administrators RSM has won approval from the firm’s creditors to extend the administration period until September 26, 2020 in order to attempt to claim the money back from Mr Young.
In a letter sent to creditors - seen by The Journal newspaper and BusinessLive - RSM said: “This letter is a request to unsecured creditors to give their consent to an extension of the period of the administration for the period of 12 months until 26 September 2020.”
It added that the reason for the extension was “to enable the administrator to complete the collection of the outstanding book debts and recover the overdrawn directors loan account”.
A spokesman for Sanderson Young said: “The former owner of the estate agency business continues to liaise with the administrators; it remains an ongoing situation and there is little more to add. “Today’s Sanderson Young trades under new ownership.”
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Despite Sanderson Young’s attempt to distance itself from Mr Young, the company still employs him as its chairman. Sanderson Young’s current managing director is Mr Young’s wife, Alison. She purchased Sanderson Young using a newly formed business called DG Young limited.
Mrs Young acquired the business out of administration in a move that was criticised by rival estate agencies that were interested in acquiring the brand.
Pattinson’s was thought to be the front-runner to buy the firm but pulled out at the last minute. Managing director Caroline Pattinson later said there had been a “lack of cooperation and a lack of information” available during the administration process.
Neil Hart, managing director of Bradley Hall, also mirrored these sentiments describing the information available as “patchy at best”.
Since coming under new ownership Sanderson Young has looked to reduce its costs by merging smaller branches to reduce its property costs. This has led to one branch closing on Gosforth High Street and another branch being relocated in Alnwick.