A trader has shut down his debt-ridden London company and opened a French one to use a post-Brexit EU loophole which avoids paying British creditors.

Peter Magurran, 35, relocated to a village near Bordeaux following a court appearance and judgments against him in England.

He was accused of attempting to illegally shut down Sinke Plumbing, a company registered in the UK as owing thousands of pounds, while reopening it as Plomberie Sinke – an exact translation of Sinke Plumbing – in south west France.

This means British creditors can no longer pursue him in the EU using the so-called Brussels Regulation Recast.

Introduced in 2012, it guaranteed the “recognition and enforcement of judgments in civil and commercial matters” across all EU states.

When Britain was part of the EU, the French were able to enforce UK court orders against debtors such as Mr Magurran relatively easily and quickly.

But a direct consequence of Brexit is that court judgments obtained by British consumers at considerable expense are no longer automatically recognised and enforced.