This article explains the Insolvency Service’s latest action against for more companies connected to the Atherton scheme, how it links to the earlier director disqualification case we reported last year, and why directors who used such arrangements should now take careful stock of their own position, especially given the increased likelihood of director disqualification where misconduct is identified.
Insolvency Service closes four further Atherton scheme operators
The Insolvency Service (IS) has secured the winding‑up of four more companies linked to the Atherton scheme: Atherton Corporate Partners LLP, Jones & Harlington Ltd, TYA GRP Ltd and TYA Two GRP Ltd.
Investigators found that these entities formed part of a model that enabled business owners to sell distressed companies for £1, keep assets, and abandon debts. Across 75 acquired companies, more than £18 million in assets were unaccounted for. The operators failed to preserve accounting records or assess what had happened to those assets.
Atherton Corporate Partners LLP, Jones & Harlington Ltd and TYA GRP Ltd were wound up at the High Court in London on 17 February. TYA Two GRP Ltd was wound up at the Court of Session in Edinburgh on 16 January.
This follows earlier action in 2024, when Atherton Corporate UK (Ltd) and Atherton Corporate Rescue Limited were shut down after similar findings.
How this links to earlier Atherton scheme related director disqualifications
In our previous article, we reported on the seven‑year disqualification bans imposed on Karen Mortimer and Joanna Seawright for their roles in acquiring distressed companies through the Atherton scheme. Mortimer was the sole director of Jones & Harlington Ltd, one of the companies now wound up. She had taken control of 138 companies referred by Atherton.
Another key figure, Neville Taylor, was disqualified for nine years in January 2025 after becoming director of more than 400 companies linked to the scheme.
The new winding‑up orders show the Insolvency Service continuing to dismantle the corporate structure that enabled the scheme to operate – and continuing to use director disqualification as a central enforcement tool.
What the Insolvency Service found
The Insolvency Service stated that Atherton‑linked companies made “false promises” to struggling business owners, offering a supposed “clean break” from debts. Investigators found that the directors who took control of distressed companies failed to preserve records, protect assets, or act in the best interests of creditors.
The wider impact was also highlighted: when proper insolvency processes are bypassed, small businesses, suppliers and HMRC are often left unpaid.
Why this matters for directors
The findings reinforce several points that directors of distressed companies need to understand:
- Selling a failing company for £1 does not remove statutory duties, and directors can still face disqualification if those duties were breached before or after the sale.
- Directors remain responsible for ensuring that assets are protected and records preserved.
- Any arrangement that avoids regulated insolvency processes carries significant risk, including the possibility of a director disqualification investigation.
- When schemes are dismantled, investigators routinely examine the conduct of all directors involved, and this is often the starting point for director disqualification proceedings.
- Where misconduct is identified, an IS investigation will follow with director disqualification a possible outcome.
- Liquidators are usually the first to raise concerns, and their reports frequently trigger Insolvency Service enquiries into potential unfit conduct.
The Insolvency Service has not stated that it is now targeting the original directors who sold their companies into the scheme. However, based on our experience acting for directors in similar situations, those individuals might see conduct reviewed by liquidators and, potentially, by the Insolvency Service. Such a review can sometimes lead to director disqualification proceedings.
Comment from Neil Davies
“This latest action shows the Insolvency Service continuing to unwind the Atherton structure, company by company. Some of the key operators have been disqualified, and now the corporate vehicles they used have been shut down.
In our experience, when a scheme of this nature is dismantled, attention often turns to the directors who placed their companies into it. Many will have acted in good faith, believing the assurances they were given. They may now find themselves facing questions from liquidators or the Insolvency Service about records, assets and creditor losses.
Where concerns are identified, director disqualification is a real risk. Directors who used any form of ‘clean break’ or £1 sale model should take advice early. The sooner issues are addressed, the better the prospects of avoiding or mitigating regulatory consequences.
Once questions are raised, directors can quickly find themselves drawn into a formal disqualification investigation unless issues are addressed early.”
Contact our Director Disqualification specialists
If you have been approached to participate in a corporate rescue scheme, such as Atherton, or are concerned about your conduct as a director of a distressed company, speak to us today.
At NDP, we specialise in defending directors facing an Insolvency Service investigation and potential director disqualification proceedings. Early advice can make all the difference. Take a look at some of our director disqualification testimonials.
Call us on 0121 200 7040
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FAQs about the Atherton Scheme
What was the Atherton scheme?
It was a model that enabled distressed companies to be sold for £1 to third‑party entities, while assets were retained and debts abandoned. The Insolvency Service found that the scheme bypassed proper insolvency processes and left creditors exposed.
Why were these four companies shut down?
Investigators found they were part of the structure used to acquire distressed companies, fail to preserve records, and leave more than £18 million in assets unaccounted for. The courts wound them up in the public interest.
How does this relate to the earlier disqualification case we reported on?
The companies now shut down were operated by individuals already disqualified for their roles in the scheme. For example, Karen Mortimer, disqualified for seven years in 2025, was the sole director of Jones & Harlington Ltd, one of the companies now wound up.
Are directors who used the scheme at risk?
The Insolvency Service has not said it is targeting those directors. However, when a scheme is dismantled, liquidators and investigators routinely review the conduct of all directors involved. That review could lead to director disqualification where misconduct is identified.
Does selling a company for £1 remove a director’s responsibilities?
No. Directors remain responsible for protecting assets, preserving records, and acting in creditors’ interests. These duties cannot be transferred or outsourced through a £1 sale or “clean break” arrangement.
What issues will investigators look at?
They typically examine whether records were preserved, whether assets were protected or dissipated, and whether directors acted in the best interests of creditors once the company was insolvent or nearing insolvency.
What should a director do if they used a similar arrangement?
They should take early, specialist advice. Understanding what records exist, what happened to assets, and how decisions were made is essential before responding to any enquiries from liquidators or the Insolvency Service.
