Company law: Restaurant defiant over rebirth with same name

Cubana, in Trippet Lane, owed 81,960 when it appointed a liquidator earlier this year, including 51,716 to HM Revenue and Customs in unpaid VAT, National Insurance and PAYE deductions.

The company that collapsed was Cubana Ltd but the restaurant has carried on trading under a fresh company – Babru Ltd – with the same directors.

The arrangement is legal under company law as it was – as required – openly publicised in the London Gazette, which formally logs company information across the country.

Last month, it was revealed another well-known Sheffield restaurant, Nonna's, had gone into liquidation with debts of 330,000 – 230,000 of which was unpaid taxes.

On that occasion, the Ecclesall Road restaurant continued to trade after a new business was set up which employed the directors of the old company – which is also a legitimate arrangement.

The new Cubana business, which has retained its directors Adrian Bagnoli and Bradley Charlesworth, paid the liquidator an undisclosed sum, understood to be less than 10,000, to retain the right to the Cubana trading name so the bar continues to operate as before.

Liquidator Adrian Graham, from Sheffield-based insolvency practitioners Hamiltons, confirmed the proceeds would leave nothing to pay creditors who also include a number of suppliers.

HM Revenue and Customs was asked why it allowed such large amounts of unpaid taxes to accumulate but a spokesman said it did not comment on individual cases.