Takeaway boss disqualified for wrongly claiming Eat Out to Help Out cash

A Manchester takeaway boss has been banned from running a company for seven years after wrongly claiming £50,000 of government support during the pandemic.

Ifraz Nabi, 41, was the sole director of New York Krispy Fried Chicken on Stockport Road, Greater Manchester.

He claimed £30,000 through the Eat Out to Help Out scheme and over £20,000 through the Coronavirus Job Retention Scheme.

The company behind the takeaway, New York Krispy Fried Chicken Limited, went into liquidation in November 2020, which triggered an investigation by the Insolvency Service.

Investigators found that Nabi had ‘failed in his obligations as director to maintain adequate accounts and financial records’ and there was ‘no explanation’ of how such sales could have been achieved while staff were on furlough.

New York Krispy Fried Chicken was found to not be eligible to claim funding through the Eat Out to Help Out scheme as it was only available to restaurants with indoor seating. The shop received the majority of its orders through apps, which were also excluded under the scheme.

Nabi also failed to register the company for tax, meaning liquidators were unable to assess how much it owed.

His disqualification was effective from 31 May 2022 and lasts for seven years.

Nina Cassar, deputy head of investigations at the Insolvency Service, said: “One of the main purposes of the Company Director’s Disqualification Act is to ensure that company directors adhere to minimum standards.

“Ifraz Nabi failed not only to maintain the accounting records of his company, he failed to register and pay his business taxes, and furthermore abused Covid-19 support schemes designed to support businesses in genuine need.

“This disqualification should serve as a reminder that the Insolvency Service will take action against those who abuse their position and do not take their obligations seriously.”

The Eat Out to Help Out scheme ran during August 2020 and saw the government subsidise 50% off the price of food and drinks at participating hospitality venues. A total of £849m was claimed for over 160m individual meals during the month.