Lancashire councillor faces calls to resign over business debt

Paddy Short is the leader of the Green Party group on Hyndburn Council

A councillor is facing calls to resign after it was revealed his bathroom firm owed almost half a million pounds to creditors when it folded last year.

Hyndburn Council's Green Party group leader Paddy Short was criticised in a Companies House report.

The report found his firm, Pure Style Bathrooms Ltd, was liable for almost £500,000 with "substantially more claims" to come.

Mr Short said he was working towards a "joint agreement" with liquidators.

An investigation was launched into Mr Short's firm, which employed his Green Party colleague Caroline Montague as finance manager, in April 2022.

Liquidators Nick Morgan and James Kaye of NTF Corporate Solutions found there was £12,000 owed to His Majesty's Revenue and Custom.

They also found the company was potentially liable to "78 non-preferential unsecured creditors" for an estimated £257,327.

In addition, the liquidators also identified 77 creditors with estimated claims of up to £249,847.

'Substantially more claims'

"There is likely to be substantially more claims than anticipated as numerous creditors that were not included in the statement of affairs have made claims," Mr Morgan and Mr Kaye said in their report.

A solicitor has been appointed to liaise with Mr Short, but according to the report he has so far "failed to co-operate with the solicitor" and therefore "they are unable to agree a settlement figure with the director to close the liquidation".

The Local Democracy Reporting Service has consulted chartered accountants who believe the report is likely to recommend Mr Short is disqualified from being a company director.

A statement from the borough Labour party issued by ex-MP Graham Jones said: "Hyndburn Labour is shocked at how damning the liquidators' report is.

"It's clear from the liquidators' report that they have no credibility or integrity."

He said both Mr Short and Mr Montague, "should resign from the council".

Mr Short - who has previously told the LDRS that he voluntarily liquidated his company due to a serious and sudden mental breakdown - said: "I am in ongoing conversations with the liquidators over the differences of our records and continue to work towards a joint agreement."

Mr Montague has been approached for comment.