Builder ran firm similar to bust one

A GWYNEDD builder has been spared jail after admitting running a company with a name similar to a firm that had gone bust.

John Gwilym Jones, 51, of Bryn Hedd, Mynytho, near Pwllheli, was a director of J&C Jones (Building Contractors) which went into liquidation in November, 2013, with debts of £795,000.

He had been appointed a director of J & S Jones Building Contractors Ltd when the firm was set up in July, 2013, a judge at Caernarfon Crown Court heard.

Prosecutor Dafydd Roberts said the liquidation of a company meant similar sounding names could not be used for five years.

Insolvency Service investigators wrote to Jones on three occasions warning him the name of the new company was too similar to the old firm.

Mr Roberts said Jones’ accountant had replied to one warning apologising for an “inadvertent breach”.

In July, 2014, the company name was altered with the Jones dropped and the title J & S Building Contractors Ltd adopted, but this was still unacceptable for the Insolvency Service.

During an interview with investigators in June last year, Jones claimed he had a verbal agreement with officials about the company name but was unable to provide any proof, added Mr Roberts.

Jones told the investigators the signs on the business had not been changed on vehicles and buildings due to cost implications, added Mr Roberts.

Jonathan Austin, defending, said Jones was highly thought of as a builder and submitted a number of testimonials.

He urged the judge to exercise his discretion and not disqualify Jones as a director, because that would have adverse effects on 10 employees and a further 10 sub-contractors who were working on building projects.

“He is keen to carry on in business and has very satisfied customers,” Mr Austin said.

Judge Huw Rees told Jones the use of a prohibited name for his business was a serious matter and he could have been jailed for up to two years.

“The aggravating feature in this case is that you ignored three warnings from the Insolvency Service. On the other hand, there is mitigation and you have pleaded guilty,” he said.

Jones was made the subject of a 12-month Community Order and told he must carry out 150 hours of unpaid work. He must also pay £2,500 costs.

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