London Auctions Ltd is insolvent and has entered liquidation proceedings. The west London firm, based at 30-34 Chiswick High Road is understood to have debts of more than £137,000 with around £44,000 owed to unpaid consignors.
Extracted from Antiques Trade Gazette | Roland Arkell
London Auctions is not connected to Chiswick Auctions which continues to operate on Colville Road, W3 8BL.
Concerns began to surround the future of the London Auctions earlier this month as calls were not returned and the premises closed during normal office hours. The firm held a sale on June 30 but an auction scheduled for Sunday, July 14 did not go ahead.
Bhardwaj Insolvency Practitioners of Northwood has been appointed as liquidator. A meeting of creditors and shareholders has been arranged (at 47-49 Green Lane, Northwood, Middlesex, HA6 3AE) when a full statement of the company’s affairs will be given.
Ashok Bhardwaj told ATG that the total owed to 101 different vendors is £44,000 with additional liabilities of £13,000 to the Inland Revenue, £18,000 to the sole director Sameer Mahomed and trade creditors of £62,000.
He added that the company has few assets to sell apart from its fixtures and fittings and it is unlikely to be offered as a going concern.
While some vendors are owed small amounts, the highest individual loss is close to £7000.
Unpaid customers have received a letter from Bhardwaj notifying them of a plan to liquidate the company. Letters have also been sent to buyers at recent sales and to vendors with unsold consignments to arrange for items to be picked up. Bhardwaj Insolvency Practitioners can be contacted on 01923 820966.
Sameer Mahomed, a chartered accountant, took control of the firm, formerly called High Road Auctions, in May 2016. As High Road went into liquidation (with debts of close to £100,000) he acquired the brand and a licence to use the premises as an auction house and invited the staff to stay with him.
It was rebranded as London Auctions after a refurbishment with the owner telling ATG he had created escrow accounts to separate client’s money from day-to-day business expenses.
Mahomed could not be reached for comment