Leeds-based Ellan NW Ltd, which traded as Knowsley Recovery, claimed it could help directors circumnavigate the insolvency system by arranging the purchase of their struggling companies from them. The company asserted that new owners would then 'attempt to negotiate with creditors', but creditors reported being unable to contact the organisation to recover owed money.
David Hope, Chief Investigator at the Insolvency Service, stated: 'Ellan NW Ltd was clearly set up to take money from the directors of failing businesses and also prevent their creditors getting the money they were rightfully owed. This blatant circumnavigation of the legitimate insolvency process will not be tolerated by the Insolvency Service as it damages the economy, harms creditors and makes a mockery of those directors who abide by the law. It is quite right that this operation has now been shut down.'
The Insolvency Service investigation revealed that Ellan NW Ltd had facilitated the purchase of approximately 226 companies from directors who paid substantial fees. The director of Ellan NW Ltd did not cooperate with the investigation. Although representatives claimed the company closed in July 2025, bank accounts showed it received over £1 million since January 2023, including more than £80,000 between July and December 2025.
Between January 2023 and December 2025, unexplained payments totalling £573,922 were identified as being made from the company to its director. Analysis of bank statements also uncovered significant personal spending exceeding £200,000, including £28,331 on flights and hotel stays in Dubai, Toronto, New York, and Dublin, alongside restaurant bills.
The Insolvency Service concluded that Ellan NW Ltd deliberately undermined the regulated insolvency process, frustrating creditors' claims and the proper investigation of failed companies and director conduct. Ellan NW Ltd was wound up on Wednesday, October 7, 2026.
Enquiries concerning the affairs of Ellan NW LTD should be directed to the Official Receiver of the Public Interest Unit via email at piu.or@insolvency.gov.uk, referencing LQD08006741. Ellan NW Ltd (company number 11768473) had its registered office at International House, 14 King Street, Leeds, LS1 2HL.
