DTI WINDS UP CAVENDISH BLACK PUBLISHING GROUP

14 Dec 2005 12:15 PM

Four companies run by two Merseyside families have been closed by the DTI for ripping off advertisers and aggressively pursuing debts.

Telesales staff from McAllister Stone Ltd (which became known as Cavendish Black Ltd) cold-called businesses around the UK conning them into buying advertising space of negligible value as the publications had virtually no circulation. Titles included "Fallout", "On Call" "A & E Logbook" and "Civvies" which the company claimed were read by off-duty emergency service personnel. Businesses that refused to pay found their unpaid debts passed to a sister company, 'Debt Enforcement Agency Ltd' which then aggressively chased payments.

The High Court in Manchester heard:

* telesales staff claimed circulations of up to 250,000 - in reality only around 200 copies of each regional publication were distributed ;

* requests for further information were recorded as confirmed bookings - subject to cancellation fees; and,

* debt Enforcement Agency Ltd staff aggressively chased payment including sending threatening letters and sending debt collectors for face-to-face visits.

In addition DTI investigators discovered that the bank accounts for McAllister Stone Ltd showed unexplained cash withdrawals of £183,480 after it had ceased. Since McAllister Stone Ltd was formed in 2003, the combined turnover of the companies amounted to over £2 million. Records also revealed payments towards a number of luxury cars including a Porsche and Chrysler Jeep.

The Court heard that the brothers Stephen and Tony Williams controlled all four companies and their wives Cheryl Williams and Alison Dean were registered as the company directors of Debt Enforcement Agency Ltd.

Consumer Minister Gerry Sutcliffe said:

"These companies have bullied and threatened honest people for their own financial gain. Their business activities were truly reprehensible and it is absolutely right that they have been closed down."

Notes to Editors

1. The Winding Up orders were made on 12th December 2005.

2. The petitions to wind up the McAllister Stone Ltd, Cavendish Black Ltd, Hamilton Black Ltd and Debt Enforcement Agency Ltd were presented on 8th November 2005 under section 124a of the Insolvency Act 1986 and followed investigations carried out by the Department's Companies Investigation Branch ("CIB") under Section 447 of the Companies Act 1985.

3. The registered office of Cavendish Black Limited and Hamilton Black Limited is at 2nd Floor, 145 -147 St John Street, London EC1V 4PY.

4. The registered office of McAllister Stone Limited is at Bridge House, 181 Queen Victoria Street, London EC4V 4DZ.

5. The registered office of Debt Enforcement Agency Limited is at Suite B, 29 Harley Street, London W1G 9QR.

6. The companies traded from 60 - 64 Argyle Street, Birkenhead, Wirral CH41 6AF.

7. All public enquiries concerning the affairs of McAllister Stone Limited, Cavendish Black Limited, Debt Enforcement Limited and Hamilton Black Limited should be made to the Official Receiver at:

The Insolvency Service
Public Interest Unit North
PO Box 326
Boulton House
17 - 21 Chorlton Street
Manchester
M60 3ZZ
Telephone 0161 934 4182

Department of Trade and Industry
7th Floor
1 Victoria Street
London SW1H 0ET
Public Enquiries +44 (0)20 7215 5000
Textphone +44 (0)20 7215 6740
(for those with hearing impairment)
www.dti.gov.uk