Liquidators Investigate Director of Collapsed Business Amid Misconduct Claims...
- teessidetoday
- Sep 2
- 2 min read
Liquidators probing the collapse of a firm which operated a bar in Hartlepool after concerns were raised regarding its 'substantial debts'....
2nd September 2025
Liquidators sifting through the books of a now collapsed business have revealed its director Joseph Franks is under investigation following concerns over the collapse of the business just shortly after the firm received a £45k Bounce Back Loan from Starling Bank.
The collapse of The Open Jar Limited which was trading under the name Eskimo Joes in Hartlepool has moved into a new phase, with joint liquidators at Begbies Traynor confirming that the conduct of the company’s director is under investigation and will continue to be closely monitored.
According to the statutory progress report, liquidators Ian James Royle and David Adam Broadbent examined the director’s actions in the three years leading up to the company’s failure. Their findings have already reportedly raised concerns, prompting the submission of a Proof of Debt claim equivalent to the shortfall owed to firms many creditors. This claim represents the maximum potential misfeasance amount that could be pursued against the director.
The report reveals that the director Joseph Franks entered into an Individual Voluntary Arrangement (IVA) on 4 April 2025, committing to make monthly contributions over a five-year period. If successful, the IVA is expected to provide a return of just 18.92 pence in the pound to his personal creditors. For the company’s liquidation, the anticipated recovery stands at around £12,477, though this remains dependent on the IVA Supervisor accepting the liquidators’ claim and the director adhering to its terms.
Liquidators have stressed that they will continue to liaise with the IVA Supervisor to ensure compliance, while also monitoring whether any recoveries can be made for creditors through potential misfeasance claims or from transactions identified in their investigations.
The report makes clear that unsecured creditors—owed more than £140,000—are unlikely to receive any direct repayment from the company itself. However, the director’s IVA may provide at least a partial return if the agreed terms are honoured.
The Teesside & Durham Post also understands landlords for the now extensively fire damaged Eskimo Joes, which was the victim of an Arson Attack causing substantial damage back in April 2025 has also been formally repossessed by landlords BK Investments NE Ltd
Begbies Traynor confirmed that their work will continue over the next twelve months, including compliance with statutory reporting requirements, reviewing creditors claims, and keeping the case bonded to protect creditor interests.
A further update will be issued in 2026, or sooner if the liquidation reaches conclusion.
For now, the director remains under scrutiny, with liquidators making it clear that they will pursue any avenue available to secure a recovery for those left out of pocket.
