Simit Sarayi UK Holding Limited Wound up in High Court

The UK holding company of the “world’s favourite bakery” café Simit Sarayi has been wound up by the Insolvency and Companies Court following a petition of a commercial landlord supported by other creditors that appeared at Court. No one appeared on behalf of the company to oppose the petition or ask for an adjournment. The Judge ordered that the costs of Hanover House Limited (the petitioner landlord) be paid out of the assets of the Company.

We are a specialist City of London Law firm who are masters of insolvency dispute litigation. Our team has unparalleled experience at both issuing and defending winding up petitions vigorously at the Royal Courts of Justice (Rolls building), or the relevant High Court District Registry or County Court with jurisdiction under the Insolvency rules.

Who issued the Petition?

Hanover House Limited of Unit A, 10 Fashion Street, London E1 6PX, claimed to be a creditor of the company and issued the winding up petition against Simit Sarayi. A winding-up petition is often issued by HMRC but can also be issued by any creditor owed more than £750. The creditor petitions the court if they are owed more than £750 as a liquidated debt and the sum has not been paid for example following a statutory demand for more than 21 days. The petitions asks the court to liquidate the company as they believe the company to be insolvent.

Insolvency and Companies Court Judge Burton	11am	The Rolls Building, Court 5	Winding up petition	CR-2022-001920	Simit Sarayi UK Holding Limited

Why did the Judge order the winding-up?

The judge granted the petitioner’s request for a winding up order. Notably nobody appeared on behalf of Simit Sarayi to oppose the petition or to request an adjournment. The court was satisfied on the evidence that the proceedings are COMI proceedings as defined in rule 1.2(2) of the Insolvency (England and Wales) Rules 2016.

Once a petition is served, the directors must act swiftly. If the petition has been received, there is a 7-day period to avoid advertisement in the London Gazette. If the company fails to act in the 7-day time limit, such as Simit Sarayi in the present case, the petition may be advertised and the Courts may at the hearing approve the petition and initiate the liquidation process.

A winding up petition is advertised under the Insolvency Rules in the London Gazette by the petitioning creditor so that other creditors are able to support or oppose the company’s position on insolvency. The document itself is public which includes the name of the company, its registered address and the details of the creditor submitting the petition. It also includes the address and the date of the future winding up petition hearing.

Need help with a winding-up petition?

Our specialist winding up petition lawyers will thoroughly advise you on the strengths and weaknesses of your case. Being the masters of insolvency dispute litigation, we assist our clients in the best possible way when it comes to opposing winding up petitions and negotiating with the creditors.

If you have been issued a winding up petition, you may challenge the petition on the following grounds:

• the debt alleged in the statutory demand or petition owed is genuinely disputed on substantial grounds by your company;
• your company has a legitimate right of set-off against the creditor that exceeds the amount claimed in the statutory demand; or
• in certain other limited circumstances (for example such as jurisdiction, technical or procedural error or delay).

In order to oppose a winding up petition, you will have to file a witness statement no later than 5 business days before the date when the petition will be heard by the Court as stated in rule 7.16 of the Insolvency (England and Wales) Rules 2016. You are also required to provide a copy of that witness statement to the petitioning creditor at least 5 business days before the hearing. It is common for the companies to instruct Solicitors and/or Barristers to appear on their behalf at the petition hearing.

Our specialist Insolvency Solicitors & Barristers

We provide a no cost initial case review to establish whether or not we can help you. We are a specialist City of London law firm made up of Solicitors & Barristers and based in the Middle Temple Inn of Court adjacent to the Royal Courts of Justice. We are experts in dealing with matters surrounding insolvency in particular issues. Our team has unparalleled experience in serving statutory demands, negotiating with debtors/creditors and setting aside statutory demands. We are experts in both issuing and defending winding up petitions vigorously at the Royal Courts of Justice (Rolls Building), or the relevant High Court District Registry or County Court with jurisdiction under the Insolvency Rules.