AQ/AQ founder looks to carry on trading despite filing for insolvency

260

AQ/AQ founder Julie Lingard has filed a notice to creditors to continue trading her business, despite filing for insolvency in July.

Lingard was the managing director of AQ/AQ when it appointed liquidators on July 4.

Insolvency specialists AABRS were brought in to handle the liquidation after a special resolution passed by the company to voluntarily wind up the business.

However, Lingard has since filed a notice to creditors on July 25 to allow ”the re-use of a prohibited name”.

A notice filed in The Gazette details that the fashion brand founder applied to a court for a moratorium under rule 22.4 of the Insolvency Act to continue to part or whole of the business, including use the company name.

Under section 216(3) of the Insolvency Act, a director of a company that has gone into insolvent liquidation “may not act as a director of another company that is known by a name which is either the same as the previous company or is so similar as to suggest an association with that company”.

The Act also states that the director may also not be “directly or indirectly be concerned in the carrying on of a business otherwise than through a company under a name of the kind mentioned, or directly or indirectly being concerned or taking part in the promotion formation or management of any such company”.

It comes after a rocky few years for the brand, which Lingard founded in 2007 and now stocks on Asos. Back in 2015, the company suffered disruption to its operations after a Boxing Day flood hits its Leeds warehouse.

The AQ/AQ store in Soho is also said to be “temporarily closed due to building works”.

Click here to sign up to Retail Gazette‘s free daily email newsletter