Case details for Lucia Francesca Frankitt

Name: Lucia Francesca Frankitt

Name: DTRIX LTD

Date of Birth: 5 / 5 / 1961

Date Order Starts: 16 / 3 / 2022

Disqualification Length: 6 Years 0 Month(s)

CRO Number: 08964894

Last Known Address: 23 Kingston Avenue, , , , BLACKPOOL, FY4 2QB

Conduct: Between 01 July 2020 and 17 September 2020, at a time when Dtrix Limited (“Dtrix”) had ceased to trade, Lucia Francesca Frankitt (“Ms Frankitt”) caused Dtrix to make net payments totalling £22,480 to herself and £20,438 to a family member which either caused Dtrix to become insolvent or increase its insolvent position. These payments were to the detriment of Dtrix’s creditors in that: Cessation To Trade & Financial Position • Dtrix traded as a restaurant which closed in March 2020 following the implementation of national Covid-19 restrictions and briefly provided a takeaway service but this ended by at least 30 April 2020. • According to ledgers provided by HMRC, Dtrix last made a payment to HMRC in respect of VAT on 20 November 2019 which cleared its outstanding VAT liability. Dtrix submitted a return for the quarter ending 31 December 2019 declaring VAT due of £6,123 (excluding surcharges of £612) which was due for payment by 07 February 2020 but this remained outstanding at Liquidation. HMRC announced on 26 March 2020 that VAT payments due between 20 March 2020 and 30 June 2020 could be deferred for 3 months and Dtrix submitted a return for the quarter ending 31 March 2020 declaring VAT due of £7,979. As a result of the deferred payment scheme Dtrix had VAT liabilities was due for payment from 01 July 2020 of £14,714 consisting of quarters ending 31 December 2019 and 31 March 2020, and surcharges. • Dtrix was required to pay £9,000 in rent to its Landlord per quarter and it is estimated that at 01 July 2020 Dtrix owed at least £18,500 in rent for quarters between 31 October 2019 and 30 June 2020. According to available bank statements, the last payment Dtrix made to its Landlord in respect of rent was on 09 March 2020 but the payment is referenced as being attributable towards the rent due up to 31 December 2019. • At 01 July 2020 it is estimated that Dtrix owed at least £33,214 in total to both HMRC in respect of VAT and its Landlord in respect of outstanding rent. • Ms Frankitt has explained that whilst restaurants in England were allowed to reopen on 04 July 2020 following the relaxing of Covid-19 restrictions, the social distancing measures which remained in place would have resulted in Dtrix operating at a reduced capacity. Dtrix did not reopen or trade beyond at least 30 April 2020. • Ms Frankitt first contacted an Insolvency Practitioner on 07 August 2020 for advice who was later appointed as Liquidator of Dtrix on 01 October 2020. Monies Available In Dtrix’s Bank Accounts at 01 July 2020 • Ms Frankitt has stated that she completed an application form on behalf of Dtrix to obtain a £50,000 Bounce Back Loan (“BBL”) which it received on 11 June 2020. The intended purpose of the BBL was to provide economic benefit to the business and to be used wholly for business purposes and not personal purposes. No repayments were due during the first 12 months in respect of the BBL. • The opening balance recorded on available bank statements on 01 July 2020 show that Dtrix had available funds of £41,016 in total. • Available bank statements show that between 01 July 2020 and 03 September 2020 Dtrix received payments totalling £7,854 from HMRC in respect of the Job Retention Scheme of which £3,707 was paid to staff employed by Dtrix (excluding Ms Frankitt and the family member). Transactions Between Dtrix, Ms Frankitt & The Family Member from 01 July 2020 and 06 August 2020 • Available bank statements show that between 01 July 2020 and 06 August 2020, Ms Frankitt made payments to Dtrix of £5,265 but received payments totalling £18,900 resulting in net payments to Ms Frankitt of £13,635. • In the same period, the family member made payments to Dtrix of £700 but received payments totalling £13,673. In addition, the family member received a single payment of £6,000 referenced as ‘Maternity’ on 06 August 2020. This resulted in net payments to the family member of £18,973. Transactions after 07 August 2020 • After Ms Frankitt had contacted the Insolvency Practitioner, available bank statements show that between 07 August 2020 and 17 September 2020 (the date of the last transaction) Ms Frankitt paid £940 to Dtrix but received payments totalling £9,785 resulting in overall net payments to Ms Frankitt of £22,480. • In the same period, the family member paid £3,300 to Dtrix but received payments totalling £4,765 (excluding a payment of £20 referenced as ‘Salary’) resulting in overall net payments to them of £20,438. Detrimental Treatment • At Liquidation on 01 October 2020, Dtrix had assets of £3,300 and estimated liabilities of £120,544 comprising of £14,714 to HMRC for VAT, £27,500 to the Landlord, £8,721 in staff redundancy/holiday pay, £49,995 to the bank who provided the BBL, £19,114 to trade and expense creditors and £500 to the director. • The net payments made to Ms Frankitt and the family member totalling £42,918 in the above periods represent the majority of payments made from the company bank account and caused Dtrix to have insufficient funds to pay its creditors as and when they fell due. • In contrast, available bank statements show that between 01 July 2020 and 17 September 2020, £17,520 was paid out of Dtrix’s bank accounts (excluding payments made to Ms Frankitt, the family member and staff members) of which other trade creditors who were owed £19,114 at Liquidation (excluding the BBL) received payments of at least £3,037. • HMRC and the Landlord were Dtrix’s largest individual creditors at Liquidation (excluding the BBL) who were last paid 20 November 2019 and 09 March 2020 respectively. 

This information is correct as at 25 / 2 / 2022



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