INSOLVENCY SERVICE
News Release issued by The Government News Network on 22 November 2007
A group of
companies based in Exeter called Key Edge that sold locksmith and
plumbing franchises countrywide has been wound up in the High
Court in the public interest following an investigation by
Companies Investigation Branch (CIB). Some 250 people invested
franchise fees totaling £2.7 million
The investigation found that franchisees were misled by false and
misleading statements about the level of training, support and
potential earnings. Also that support under the Government's
Small Firms Loan Guarantee Scheme of £150,000 to finance the
development of a national 24 hour call centre was applied instead
to a significant extent for the directors' own benefit.
In ordering the companies into compulsory liquidation Registrar
Christine Derrett said:
"I am satisfied that it is appropriate in each of the three
cases to make the usual compulsory order".
-Ends-
Notes for editors:
1. Key Edge Limited was incorporated on 31 August 1999. Its
registered office is at 5 Theobald Court, Theobald Street,
Borehamwood, Hertfordshire, WD6 4RN, the address of accountants.
The directors of the company are Julian Lloyd Bennellick and
Christopher Davison (who is also company secretary). On 9 May 2007
the company entered into a Company Voluntary Arrangement
appointing Mr Asher Miller of Pearl Assurance House, 319 Ballards
Lane, London, N12 8LY to deal with its creditors.
2. Key Edge Plumbing Limited was incorporated on 18 September
2003. Its registered office is at 5 Theobald Court, Theobald
Street, Borehamwood, Herfordshire, WD6 4RN, the address of
accountants. The directors of the company are Julian Lloyd
Bennellick (who is also company secretary) and Christopher Davison.
3. Key Edge Group Limited was incorporated on 23 March 2005. Its
registered office is at 5 Theobald Court, Theobald Street,
Borehamwood, Hertfordshire, WD6 4RN, the address of accountants.
The directors of the company are Julian Lloyd Bennellick (who is
also company secretary) and Christopher Davison.
4. The petitions to wind up the three companies in the public
interest were presented on 14 August 2007 under the provisions of
section 124A of the Insolvency Act 1986 following enquiries
carried out by CIB under the provisions of section 447 of the
Companies Act 1985.
5. The companies were all ordered into compulsory liquidation on
21 November 2007.
6. Companies Investigation Branch, part of the Insolvency
Service, carries out confidential enquiries on behalf of the
Secretary of State for Business, Enterprise & Regulatory
Reform (BERR).
7. The Insolvency Service administers the insolvency regime
investigating all compulsory liquidations and individual
insolvencies (bankruptcies) through the Official Receiver to
establish why they became insolvent. The Service also authorises
and regulates the insolvency profession; deals with
disqualification of directors in corporate failures; assesses and
pays statutory entitlement to redundancy payments when an employer
cannot or will not pay employees; provides banking and investment
services for bankruptcy and liquidation estate funds; and advises
ministers and other government departments on insolvency law and practice.
8. All public enquiries concerning the affairs of the company
should be made to: The Official Receiver, Public Interest Unit, 21
Bloomsbury Street, London, WC1B 3SS, Tel No: 020 7637 1110. Email: piu.or@insolvency.gsi.gov.uk
Further information about the work of The Insolvency Service is
available from http://www.insolvency.gov.uk