Council considers scrubbing bust soap firm's £67k debt

A handmade soap firm that collapsed owing almost £230,000 could have its outstanding business rate debt written off by a council.

Flintshire-based Westminster Worldwide Trading went into liquidation in February last year with total debts of £229,408.

Flintshire council's cabinet will meet later to discuss whether it writes off the £67,250 it is owed by the company as it is thought to be impossible to recover the money.

A senior council officer said writing off the debt was "now necessary". The decision would not have a direct affect on the council's finances as Welsh business rates are paid into a central pool.

The soap company was located on the Flintshire side of Chester Employment Park.

In his report, the council's chief officer for governance Gareth Owens said it "took time" to gather sufficient evidence showing that the business was the party that owed business rates.

This resulted in the demand notice being issued in January 2025, with the first instalment due on 1 February, meaning "no further recovery action could be initiated before the insolvency commenced" at the end of that month.

Owens' report added: "The joint liquidators have confirmed that there will be no available dividend to ordinary unsecured creditors.

"There is no prospect of receiving a dividend from the liquidation and outstanding business rates are deemed to be irrecoverable, so the write off of the debt is now necessary."

The company's outstanding debts included staff - who were owed £131,484 - and HM Revenue & Customs, which collectively through PAYE and corporation tax was owed £57,370.

We used AI to help edit this article, and a BBC journalist checked it before publication. More on this AI pilot.