Ellan NW shut down after arranging 226 company purchases

Leeds-based Ellan NW Ltd, which charged directors thousands of pounds to arrange the purchase of their failing businesses, was wound up on 7 October 2026 after facilitating about 226 company purchases.

The business, trading as Knowsley Recovery, was investigated by the Insolvency Service, which found that it obstructed creditors and undermined the regulated insolvency process. The winding-up was reported by GOV.UK Business.

What happened

Ellan NW marketed its service to directors seeking to leave struggling companies behind. It presented the sale of their businesses as a way to avoid the usual insolvency process and promised directors they could depart without subsequent repercussions.

Under the arrangement it promoted, the purchasers would try to reach agreements with creditors. However, creditors who complained about Ellan NW said they could not contact the business to pursue the money owed to them.

Investigators established that directors paid fees running into thousands of pounds for the company to facilitate those purchases. The source does not give a total for the debts owed by the approximately 226 businesses involved.

The investigation concluded that Ellan NW's activities went beyond obstructing debt recovery. They also hindered scrutiny of the failed companies and examination of how their directors had acted.

Ellan NW's own director did not co-operate with the investigation. Representatives acting for him said the business had stopped operating in July 2025, but investigators found subsequent receipts in its bank accounts.

The background

Banking records showed that Ellan NW received more than £1m from January 2023 onwards. That included more than £80,000 between July and December 2025, the period beginning with the month in which its representatives said it had closed.

Investigators identified £573,922 in unexplained transfers from the company to its director between January 2023 and December 2025. The published account does not explain the purpose of those payments.

The bank statement analysis also identified more than £200,000 spent on personal expenses. Flights accounted for £28,331, while other expenditure included hotel accommodation in Dubai, Toronto, New York and Dublin, alongside restaurant bills.

Ellan NW Ltd is registered under company number 11768473. Its registered office is International House, 14 King Street, Leeds, LS1 2HL.

The Insolvency Service has powers to investigate complaints concerning corporate abuse by companies that are still operating. The conduct it can examine includes serious misconduct, fraudulent activity, scams and dishonest business practices.

What people are saying

David Hope, chief investigator at the Insolvency Service, said Ellan NW had been established both to collect money from directors of failing businesses and to stop creditors recovering sums due to them.

He said attempts to bypass the legitimate insolvency system caused economic harm and disadvantaged directors who complied with their legal duties. He welcomed the closure as an appropriate response to the operation.

The account of the investigation contains no explanation from Ellan NW for the unexplained director payments or the personal expenditure identified in its banking records. Its representatives' position concerned the claimed July 2025 closure.

What happens next

Enquiries about Ellan NW's affairs should now go to the Official Receiver's Public Interest Unit. The published contact address is piu.or@insolvency.gov.uk, with reference LQD08006741.

No estimate of potential creditor recoveries or timetable for distributions is given in the announcement. It also does not announce any separate action against Ellan NW's director.

For directors seeking guidance on their own duties, the Insolvency Service directs businesses to its Director Information Hub. It also provides information on reporting financial misconduct and raising concerns about the behaviour of operating companies.