Four companies linked to a controversial insolvency scheme have been shut down after investigations revealed they helped directors offload struggling businesses for just £1 while retaining assets and walking away from debts.
The Insolvency Service confirmed that Atherton Corporate Partners LLP, Jones & Harlington Ltd and TYA GRP Ltd were wound up at the High Court in London on 17 February, while TYA Two GRP Ltd was wound up at the Court of Session in Edinburgh in January. The action follows earlier enforcement measures in 2024 against other companies involved in what became known as the Atherton scheme.
Investigators identified more than £18 million in combined assets across 75 companies that were transferred under the scheme. Shares in financially distressed firms were sold for £1 to Jones & Harlington Ltd, TYA GRP Ltd or TYA Two GRP Ltd. These entities assumed liabilities on paper but received no corresponding assets. Once the sale was complete, the original directors resigned.
The Insolvency Service found that the operators of the scheme failed to preserve accounting records or properly account for what happened to the companies’ assets. Directors installed through the scheme allegedly did not act in the best interests of creditors, leaving suppliers, small businesses and HM Revenue and Customs exposed to losses.
For many entrepreneurs across the UK, including those in diaspora communities who often rely on family savings and informal lending networks to launch businesses, insolvency can already be devastating. Schemes that promise a “clean break” from debt may appear tempting during financial hardship. However, regulators warn that such arrangements can undermine legal protections designed to ensure creditors are treated fairly.
Dave Magrath, Director of Investigation and Enforcement Services at the Insolvency Service, said previous investigations found that false promises were made to struggling business owners, suggesting they could walk away from debts without consequence. He stressed that when companies sidestep proper insolvency procedures, it is often small suppliers and taxpayers who suffer most.
Karen Mortimer, sole director of Jones & Harlington Ltd, was disqualified as a company director for seven years in October 2025 for her role in the scheme. She was found to have put creditors of 138 companies at risk after taking control of businesses referred through Atherton Corporate UK Ltd and Atherton Corporate Rescue Limited. Neville Taylor, described as a key figure in the scheme, was disqualified for nine years in January 2025 after being paid more than £250,000 to become sole director of over 400 companies.
The Official Receiver has been appointed liquidator of Atherton Corporate Partners LLP, Jones & Harlington Ltd and TYA GRP Ltd. Grant Thornton UK Advisory & Tax LLP has been appointed joint liquidator of TYA Two GRP Ltd.
This case highlights the importance of understanding director responsibilities and the risks of schemes that promise fast exits from debt. Under UK insolvency law, directors have clear duties to protect creditors’ interests when a company becomes insolvent or is approaching insolvency. Failure to comply can result in disqualification, financial penalties and, in some cases, criminal consequences.
For diaspora entrepreneurs, who make up a significant share of small and medium-sized enterprises across Britain, financial literacy and awareness of insolvency procedures are crucial. Community business owners often operate in tight-knit supply chains, meaning the collapse of one company can ripple through entire networks.
Search trends show rising interest in terms such as “director disqualification UK,” “insolvency scheme,” and “selling company for £1,” reflecting growing concern about corporate misconduct and creditor protection. Clear reporting on enforcement actions helps protect legitimate businesses from falling victim to misleading advice.
The Insolvency Service continues to investigate complaints about corporate abuse, including fraud and dishonest practices in live companies. Directors are encouraged to seek guidance through official channels, including the Insolvency Service’s Director Information Hub, rather than relying on unverified commercial schemes.
At Chijos News, we remain committed to informing diaspora business communities about regulatory developments that protect fair competition and financial accountability. Enforcement action against schemes that undermine insolvency law sends a strong message that shortcuts come at a cost, and that the system exists to safeguard both creditors and honest entrepreneurs.