A COMPANY liquidator is still trying to find out why insurers rejected a claim over the fire which wrecked an upmarket Poole cafe and led to the business’s collapse.
Cafe Shore at Sandbanks never reopened after it was wrecked by an electrical blaze in August 2014.
Its operator, Lucy Enterprises, went into administration owing at least £447,392 to creditors.
In his latest progress report, liquidator Simon Renshaw, said: “As previously reported, it has been established that the insurance claim was declined as a result of alleged misrepresentation and although I was subsequently advised that a challenge to the insurers’ decision was ongoing, I was unable to secure any evidence of this.”
He has instructed lawyers to help clarify the details of any claim and any challenges to it.
The lawyers are seeking the company directors’ authority for the information to be released by their solicitors.
The liquidator also discovered “potential overdrawn directors’ loan accounts” of £101,604 due from director Ben Brafman and £63,159 from his mother and fellow director Julia Brafman.
Mr Renshaw said the company’s former accountants had told him the records were “erroneous” and they would provide further details but “this information was ultimately not forthcoming”.
He has appointed solicitors to seek recovery of the balances and will update creditors in his next report.
The liquidator said he had received claims totalling £351,520 from 19 unsecured creditors.
He had yet to receive claims from another 19 whose debts total £92,056.
Two claims have been received from secured creditors – an employee owed £538 and the Department for Business Innovation and Skills, claiming £3,278.
In March 2013, Cafe Shore Limited, which also had Julia Brafman as a director, went into liquidation with debts of £404,000. There was no money for unsecured creditors.