Farnworth: Takeaway directors used Bounce Back Loan 'for personal purposes'

A report from the Insolvency Service found that Fitim Nika, 44 of Hallbridge Gardens, Bolton, had applied for a loan of £50,000 for Simpson Fried Chicken on Albert Road in Farnworth but used the money “for his own personal benefit.”

The Bounce Back Loans were designed to help businesses recover from the Covid-19 pandemic, but the report found that some of these funds in this case had been transferred to Fitim's own bank account “with no economic benefit for the business.”

Cllr Nadeem Ayub, who represents Farnworth on Bolton Council, said: “First of all we welcome any support for businesses, particularly for those that may have been struggling because of Covid, so the bounce back scheme was a welcome move from the government.

“But its also important that businesses do the right thing, and that the money is used correctly, so in cases like these its right for the government to clamp down on it.”

The report found that on October 9 2020 Simpson Fried Chicken had received £50,000 from the bounce back loan scheme.

But on October 14 £25,000 was transferred to a bank account belonging to Fitim's co-director Fatmir Nika, 41, of Ashworth Lane, Bolton.

The £25,000 was then transferred to Fitim's account, ‘for his personal benefit’ the next day, according to the report.

Fitim then made a loan repayment of £5,000 to Simpson Fried Chicken Limited on April 30 2021, while Fatmir then made another payment of £5,000 to the company a few days later on May 4.

Using the money like this broke the terms of the bounce back scheme, which state that the purpose “was to provide economic benefit to the business and not for personal purposes.”

The business went into creditors’ voluntary liquidation on July 15 that year with liabilities of £126,000 including £50,000 owed to the bounce back loan and £74,000 owed to HM Revenue and Customs.

Both Fitim and Fatmir  have been banned from being company directors for six years.