OXFORD estate agent James C Penny has gone into liquidation with debts of more than £400,000.

The four staff were made redundant but were then almost immediately re-employed by a new company called James C Penny (Estate Agents) Ltd, according to the report from liquidator Bridge Business Recovery.

The new company is controlled by a former director, who had resigned from the original company on February 1.

Creditors were told the assets were estimated at £1,800, while the company owed £105,429 to HM Revenue and Customs from employees’ PAYE, National Insurance and Corporation Tax, plus £71,634 VAT.

Meanwhile, the National Association of Estate Agents said it was taking action over James C Penny’s claim on the company’s website that he is a member of the association. NAEA chief executive Peter Bolton King said: “We have already sent a letter out. James C Penny, according to our records, has not been a member for some years.”

The company was owned by Israr and Zulfiqar Hussain, of Bartlemas Road, Oxford, and by James C Penny, of Eynsham. According to the liquidator’s report, Istikhar and Israr Hussain held office and were helped in day-to-day management by other family members.

The main creditor is Istikhar Hussain, who is owed £299,875. He is the only director who remains on the register at Companies House. The other directors, Zulfiqar and Israr Hussein, resigned on February 1.

Zulfiqar Hussain, the former company secretary, whose address at Companies House is given as 11 Granville Road, east Oxford, is involved in the two new companies which were set up on January 14.

On January 28, he became a director of James C Penny (Lettings) Ltd, and of James C Penny (Estate Agents) Ltd.

Zulfiqar Hussain is also a director of another Oxford estate agent, Charles Lawson and several other dissolved companies with the Charles Lawson name.

Robin Swailes, of North Oxford Property Services, said he had teamed up with residential agent Thomas Merrifield to bid for the James C Penny name from the liquidator, Danny Wright of Bridge Business Recovery.

Mr Swailes said: “If any other estate agents would like to help, they should call the liquidator.”

Asked for a comment, Istikhar Hussain said: “I’m no longer involved after the administration.” No one from James C Penny was available to comment.

David Murray, of law firm Morgan Cole, said the Insolvency Act was specifically designed to avoid the ‘phoenix effect’ where insolvent companies re-opened under similar names, but there were exceptions.