INSOLVENCY SERVICE
News Release (Ins/Coms/15) issued by The Government News Network on
1 July 2008
Medical
Recruitment Publisher Closed Down Following Investigation
An
advertising recruitment company has been wound-up by the High
Court in Manchester following an investigation by the Companies
Investigation Branch (CIB) of the Insolvency Service.
Fast Track Media Limited ("Fast Track"), based in
Leamington Spa, carried on business as a publisher of a medical
recruitment journal called the 'MRJ', and generated
income from the sale of advertising space for medical personnel
recruitment advertisements. The company dealt with NHS Trusts
throughout the UK, private hospitals, charities, and advertisers
based overseas.
CIB's investigation found the company operated by
cold-calling employers, who had already placed recruitment
advertisements in established third party publications. The
investigation found that in many cases the employer believed they
were being contacted by the reputable publication, rather than by
Fast Track and that the employer did not understand that they were
agreeing to a new order being placed.
In making the winding up order the court found, amongst other
things, that:-
- The company operated with a lack of commercial probity. Its
income and business being dependent on sales techniques which were
improper, misleading and which, were designed to and did mislead
potential customers in order to induce them to pay for advertisements,
- Potential advertisers were pressured into completing and
returning booking confirmation forms,
- There was a lack of commercial benefit to advertisers, and the
existence of the company's website was not externally advertised,
- The high level of unpaid sales invoices (around 73 per cent
during one period) was indicative of a high level of advertiser dissatisfaction,
- The company failed to maintain or deliver up adequate
accounting records.
NOTES TO EDITORS
1. The registered office of Fast Track Media Limited was at 27
Old Gloucester Street, London, WC1N 3XX and the company traded
from 80a Heathcote Road, Whitnash, Leamington Spa, CV31 2NF. The
company was incorporated on 17 November 2005.
2. The petition to wind-up the company in the public interest was
presented on 22 April 2008 under the provisions of s124A of the
Insolvency Act 1986 following investigations carried out under
section 447 of the Companies Act 1985 by the Companies
Investigation Branch of the Insolvency Service. The Winding-up
Order was made on 25 June 2008 following the appointment of The
Official Receiver as provisional liquidator of the company on 02
May 2008.
3. 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.
4. The Insolvency Service carries out confidential enquiries on
behalf of
the Secretary of State for Business Enterprise and
Regulatory Reform through Companies Investigation Branch. 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.
5. All public enquiries concerning the affairs of the company
should be made to: The Official Receiver, Public Interest Unit, PO
Box 326, 17 - 21 Chorlton Street, Manchester, M60 3ZZ. Tele: 0161
934 4182
Email: piu.north@insolvency.gsi.gov.uk
6. Further information about the work of The Insolvency Service
is available from http://www.insolvency.gov.uk
Insolvency Service, 21 Bloomsbury Street, London, WC1B 3QW
Press Notice