Our client’s company was in the process of liquidation, having reached a point where it was no longer financially sustainable. The client wanted to continue using the name of the company after the liquidation had been finalised.

This would involve applying to the court using a Section 216 application which, if successful, would grant the client permission to continue trading under the same name as the old company.

Christopher Buck contacted the client to establish their reasoning for wanting to continue trading under the same name. Once this was confirmed, we prepared a draft order, witness statement and application notice and provided these to the client for their approval.

When the documents had been approved by the client, an application was made to the court to begin the process. The hearing date was then confirmed by the court, allowing us to serve notice on the liquidators and the Insolvency Service. Both confirmed that they would not object to the application.

A hearing bundle was prepared incorporating the application notice, witness statement, letters of non-objection and the draft order. Counsel was then instructed to attend the hearing.

The order was approved at the hearing and was subsequently sent to the client for service to the creditors. We also provided confirmation to the Insolvency Service and the liquidators.

The grant of the order allowed the client to continue trading under the name of the old company and as such, benefit from any goodwill and brand recognition that it had retained.

Even in situations where a company has entered liquidation, there can still be goodwill that remains attached to the brand. Without the application that was made to the court in this instance, that goodwill would have been lost.

The client has been able to continue to trade under the old company’s name and benefit from the goodwill they developed during the time that the company was operational.