£1 Million Debt Disaster: Liquidators Continue Probing Directors of Collapsed Cleveland Fire Brigade Firm..
Creditors Left Empty-Handed as Investigation Into Collapsed Fire Brigade Company Continues
14th October 2026
The winding-up of the controversial business which was underpinned with public funding from Cleveland Fire Authority has entered another stage, with liquidators revealing that more than £1 million pounds is owed to unsecured creditors, while investigations into the conduct of those responsible for running the doomed company remain ongoing.
The latest progress report, filed with Companies House seen exclusively by the Teesside & Durham Post give a glimpse into the financial collapse of the former fire brigade-linked business, Cleveland Fire brigade Risk Management Services CIC, which entered creditors' voluntary liquidation back in August 2025 & reported on exclusively by ourselves.
The company, which was incorporated in March 2011, operated from premises at the Innovation Centre in Hartlepool before its financial difficulties finally caught up with it, leading to its eventual winding-up.
Now, more than a year after liquidators were appointed to the failed firm, the latest report suggests that unsecured creditors could be left without receiving a single penny of the money owed to them, with liquidators confirming that investigations into the company's affairs and the conduct of its directors are continuing, raising the possibility that further action could be on the horizon if evidence of wrongdoing emerges.
More Than £1 Million Owed to Unsecured Creditors...
According to the report, liquidators have received unsecured creditor claims totalling an eyewatering £1,071,770. However, the liquidators have delivered a particularly bleak assessment of the prospects of those creditors ever recovering their money back, with the report outlining that there is likely not to be sufficient funds available to pay a distribution to the firms unsecured creditors.
This means that businesses, organisations and other creditors owed money by Cleveland Fire Brigade Risk Management Services CIC are currently expected to receive nothing through the liquidation process, with the liquidators finding that at least one business listed as a creditor has themselves been plunged into insolvency because of the businesses collapse.
The scale of the unpaid debts for the so called Community Interest Company is said to be raising further questions about how the company managed to reach a position where the liabilities of this magnitude could no longer be met, with unsecured creditors facing the prospect of losing everything.
The liquidators also confirmed that preferential claims from employees totalling £4,943 and the Redundancy Payments Service totalling £55,300 were all agreed and paid in full in April 2026. HM Revenue and Customs also submitted a substantial claim as a secondary preferential creditor, relating to unpaid VAT, PAYE, construction industry scheme deductions and employer National Insurance contributions. HMRC's claim was ultimately assessed at approximately £1.158 million, with an initial £30,000 distribution made on the 5th of August 2026.
A further distribution is expected, although the report makes clear that HMRC will not recover the full amount its owed.
Nearly £200,000 Recovered as Assets Sold Off
The liquidators, Martyn James Pullin and Bhuvnesh Majupuria of FRP Advisory Trading Limited, report that approximately £197,390 has now been recovered through the realisation of company assets and other receipts.
These recoveries have principally involved cash held in bank accounts, outstanding debts, the sale of plant and machinery, motor vehicles and insurance-related recoveries.
The report also reveals that the liquidators had to reconsider how some company assets were to be sold.
An agreement for the disposal of equipment and other assets was amended after the liquidators reportedly concluded that selling them through a different arrangement would prove more cost-effective for the insolvent estate.
Meanwhile, an insurance rebate of £7,510 was recovered following correspondence with the company's brokers.
However, despite the money recovered, the amount available remains insufficient to meet the company's outstanding liabilities.
Directors Remain Subject to Investigation
One of the most significant disclosures in the latest report concerns the continuing investigation into the company's affairs and the actions of those responsible for its apparent mismanagement.
Under the Insolvency Act 1986, liquidators are required to examine certain aspects of the company's financial affairs and the conduct of its directors, where the latest report confirms that the liquidators have reviewed available company records, requested further information from directors and invited them to provide information about their conduct during the period leading up to the business's insolvency.
In particular, the report states that directors were asked to complete questionnaires under the Company Directors Disqualification Act 1986, suggesting liquidators where themselves concerned that actions relating to the companies downfall were in some part an issue with its directorship of the business.
The liquidators explain that available records have been reviewed and that their findings have been considered against the relevant government department's reporting criteria.
However, the report does not disclose whether any allegations of misconduct have been identified.
Could Directors Face Disqualification?
Although the report does not identify any director as having committed wrongdoing, the fact that the statutory conduct investigations remain ongoing is significant, with the Teesside & Durham Post finding that at least one of its directors has withdrawn their involvement in the ltd companies they were associated with altogether.
Under the Company Directors Disqualification Act 1986, directors of insolvent companies may face disqualification proceedings where their conduct is found to make them unfit to be involved in company management.
Depending on the circumstances, disqualification can prevent an individual from acting as a company director for between two and fifteen years.
In some cases, insolvency investigations can also result in claims seeking the recovery of company assets or money from the directors themselves, although liability must be established on the relevant legal grounds.
In the case of Cleveland Fire Brigade Risk Management Services CIC, the report confirms that the investigation process remains open but provides no indication that disqualification proceedings, criminal charges or civil recovery claims have been commenced.
Liquidation Still Far From Complete..
Despite the winding-up having commenced in August 2025, there's still no confirmed date for the liquidation of the business to formally conclude.
The liquidators say further work is required to investigate outstanding transactions, consider whether any company shareholdings have value, resolve creditor matters and complete the necessary statutory investigations.
The report also confirms that unsecured creditors will be notified of their inability to receive a dividend through the liquidation process as those responsible for the firms collapse continue to remain in their roles, advising councillors & town officials on where public funds should be best spent.
