Firms face court action

THE companies running three popular pubs and restaurants owned by a Glasgow entrepreneur could be wound up in a row over business rates.

Council bosses launched a pre-emptive strike against the owner of well known bars, including Mono, and Stereo in the city centre.

They have petitioned the court for compulsory liquidation because the businesses were themselves planning voluntary liquidation, legally avoiding paying bills totalling almost £200,000.

The court has not yet made any ruling on the application, but the council hopes the move will protect assets for the companies and give the council a better chance of recovering the cash.

A provisional liquidator has been appointed over the businesses which own bar and restaurants Mono, Stereo, the Flying Duck and The 78.

But the owner, Craig Tannock, says nothing will change for his customers and the businesses will stay open.

Council officials acted after Mr Tannock informed them he was about to wind up the companies himself, but continue trading with different companies under new names, which would mean the bills might never be paid.

An e-mail was sent to the council's finance department telling them of his intention to wind up the firms, and then to begin paying business rates for new firms set up to continue trading at the same bars.

Mr Tannock said negotiations have been "difficult" and that he presented a workable payment plan to the council which was rejected.

He also claims council officials agreed he would liquidate the firms and start trading again with a clean slate.

However, City Treasurer, Gordon Matheson said: "Disgracefully, there are directors out there who operate by running up debts, then crashing their firms and rising from the ashes the next day with a new name and a clean slate.

"Meanwhile, their competitors pay their way, contributing to the council services we all rely on. I'm not prepared to stand for that. This legal action should serve as a warning. We won't stand aside and watch anyone take advantage of Glasgow's taxpayers."

In total, firms owned by Mr Tannock owe £196,398.

Council officials said Mr Tannock has avoided rates in the past, with other firms including the 13th Note music venue by the same method and this prompted the court action.

Glasgow Sheriff Court heard how limited companies he was director of were put into voluntary liquidation but he continued trading under new names, including Bakunin owing £25,000, Chompsky £20,000, 13th Note £26,172, Beancurd £21,000, Gogh £12,500.

The total owed by firms previously liquidated by Mr Tannock total £105,027.

It is understood HM Revenue and Customs are also owed around £400,000 in VAT and PAYE from the firms. Mr Tannock said he also failed to reach agreement with HMRC over payments.

Mr Tannock said he offered to pay the bills over 36 monthly instalments to allow his businesses to trade through a difficult time.

He said: "I have been utterly open with the council at all times. Negotiations with Glasgow City Council have been increasingly difficult over the last few months.

"At a recent meeting there was consensus that the best way forward would be voluntary liquidations followed by freshly invested and viable new companies setting up paying rates and maintaining jobs. Without warning Glasgow City Council put the companies into provisional liquidation without any consideration for the survival of the businesses or the maintaining of 50 jobs.

"I tried extremely hard to agree a payment plan that would have cleared all the rates arrears. I have communicated pro-actively and professionally throughout this process.

"I succeeded in attracting major investment that could have allowed the companies to be turned around given realistic payment deals with rates and HMRC."

Maureen Leslie of MLM Insolvency has been appointed Provisional Liquidator of four firms: Tempeh Ltd, Tamari Ltd, Hopeseed Ltd and Hoperoot Ltd. The latter is thought to have ceased trading but owed more than £20,000.

Mr Tannock is a director of all the firms and all owed cash in non domestic rates.

The Council says Tempeh (The 78 at Kelvinhaugh Street) owes £40,900, Tamari (Mono in Osbourne Street) owes £31,300, Hopeseed (Stereo Renfield Lane) owes £60,435.

In July, a company called Hopesound which ran the Flying Duck, was liquidated owing £34,000. The council says the debts built up over several years and despite agreements to pay, arranged by Mr Tannock, the bills remained outstanding.

Mr Tannock is a well-known figure in Glasgow's pub club and music scene, for promoting vegetarian and vegan food and providing opportunities for new bands. Pubs in the dispute A provisional liquidator has been appointed over the businesses which own the popular Glasgow bar and restaurants, Mono, Stereo, The 78 and the Flying Duck