Hull funeral home inquiry: Legacy faces wind up order over unpaid debt

A winding up petition has been issued against a funeral company at the centre of a police inquiry over a claim of "significant" unpaid council debt.

Hull City Council said its petition against Legacy Independent Funeral Directors would be "considered" at a court hearing on 9 April 2024.

The firm owed the authority £51,508.46 for unpaid charges including cremation fees, which "became apparent" in February 2023, the council said.

Legacy has been contacted for comment.

Two people are on bail after a police investigation into the company began on 6 March following a report of "concern for care of the deceased".

Few details about the police investigation have been revealed but 35 bodies were removed from the firm's Hessle Road premises and taken to another mortuary. Their families have been contacted, Humberside Police had said.

The force said a specialist team of officers was also examining a quantity of ashes recovered from this site.

MP for Hull West and Hessle Emma Hardy said affected families would not have to pay for another funeral, with the costs being picked up by the local authority using funds given by the government.

Specific matters such as payments for wakes, flowers, or if there will be a "large civic funeral" or individual funerals for the deceased are yet to be decided.

"Those questions need to be thought through with the families directly involved and with the council", Ms Hardy added.

In total, Legacy allegedly racked up nearly £55,000 in debt, of which £2,000 is said to be owed to East Riding of Yorkshire Council for unpaid burial fees, the BBC understands.

Hull City Council said it had obtained a County Court Judgement last year for the unpaid £51,508.46 debt and arrangements had since been made for the money to be repaid, with the most recent payment being made by the firm to the authority on 29 February - about a week before police started its investigation.

In a statement, the council said: "Due to the nature of the industry, it is not unusual for funeral directors to have money owing, as they await payments from families who have lost loved ones.

"But it became apparent in February of last year that the debt owing to the council by Legacy Independent Funeral Directors Ltd was becoming significant, so the council obtained a County Court Judgement of £51,508.46, in relation to unpaid fees and charges, including cremation fees.

It is unclear how long the debt has been accumulating but the authority said it was trying to recover the remaining £40,938.08 debt.

"We are exploring options to recoup that sum, and have issued a petition to wind up the company, which will be considered at court on Tuesday 9th April 2024."

Legacy, which was established in 2010, was given formal notice on a number of occasions between 4 January 2022 and 12 March 2024 that it would be struck off, according to Companies House records.

It was issued five First Gazette notices, meaning the company was in the process of being removed from the register and would no longer legally exist.

But on four occasions Legacy was given a reprieve to have the "compulsory strike-off action" discontinued and a fifth warning was "temporarily suspended" on 19 March because the registrar received an "objection".

Ms Hardy said the potential for regulating the funeral industry was discussed in the House of Commons on Tuesday and there would be a "call for evidence" in two months' time to begin the process.

Humberside Police said it had received more than 1,500 calls from people who had used Legacy and were concerned about their loved ones' remains.

Officers cordoned off three sites after the force received a report on 6 March of concerns "in relation to the storage and management and processes of the deceased people within those premises".

Cordons were subsequently lifted at Legacy's premises in Hessle Road and Anlaby Road in Hull, and Beckside in Beverley.

A 46-year-old man and a 23-year-old woman were arrested on suspicion of prevention of a lawful and decent burial, fraud by false representation and fraud by abuse of position. They have since been released on bail while police inquiries continue.

The force said its dedicated helpline numbers, external remain open.

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