Lawyers for Taylor & Sons told Mr Justice Edis that the business suffered “devastating” consequences as all of their credit agencies and 3,000 suppliers had revoked their services after seeing the Companies House notice claiming the firm had folded.
The news broke to the former managing director of the company while he was celebrating his wife's 50th birthday in the Maldives. He got a call from one of their main clients demanding a meeting for the next day, Mr Davison-Sebry told WalesOnline.
Taylor & Sons had gone into administration two months after the error was made, the court also heard.
Mr Edis concluded after months of legal proceedings from November that the Registrar of Companies had a duty to take “reasonable care” to ensure that an order was not registered against the wrong firm.
Mr Davison-Sebry, 57, has claimed nearly £9 million in damages and a written ruling was published yesterday. The judge made no decisions on levels of compensation in the ruling however a damages assessment is expected at a later stage.