On Friday 25 June
2010, Sixty-Sixty Four Limited, a London based company that traded
as a men’s magazine publisher was ordered into liquidation in the
High Court on grounds of public interest following an
investigation by Company Investigations, which is part of the
Insolvency Service.
The investigation found that Sixty-Sixty Four Limited, trading as
‘UPstreet’, who produced two fashion and lifestyle magazines aimed
at men (www.upstreet-magazine.co.uk)
was operated by its directors with a lack of commercial probity,
was insolvent and had owed money to at least eight employees and
freelance journalists from 2008.
Commenting on the case, Company Investigations Supervisor, Chris
Mayhew said;
“The evidence uncovered by this investigation discloses this was
the third company used by the directors as a shield to protect
themselves from the liabilities incurred in running a publishing
business. Sixty-Sixty Four Limited was operated with cynical
disregard for staff, contributors, photographers and journalists,
many of whom remain unpaid.”
Gavin Knight a former editor of the magazine
'Palladium' obtained a judgement in the
Brentford County Court against the company in February 2009 for
£3,985. The company counterclaimed for £60,000 requesting an
adjournment of the claim which was refused as no supporting
evidence was presented. The editor’s judgement debt remains
unpaid. Speaking after the High Court case Mr Knight said;
"It is good that justice has finally seen to be done for
all the freelance journalists who wrote articles in good faith for
these magazines, but remained unpaid. It's tough enough
out there making a living as a freelance journalist without having
to pursue payment through the courts."
The first magazine “UPstreet”, with a claimed readership of
55,000, had previously been published both in French and English
by two other related companies which subsequently failed (see
Notes to Editors). Although both earlier companies went into
insolvent liquidation owing between them over £351,000,
Sixty-Sixty Four Limited suggested in its business plan that no
major creditors suffered losses as a result.
From May 2008 the company began publishing a second magazine in
English called “Palladium” and according to the business plan
Sixty-Sixty Four Limited held the copyright in respect of both magazines.
The company’s income was derived from subscriptions and from
selling advertising space to well know designer brands such as
Jean Paul Gaultier, Hermes, Hugo Boss, Lacoste, Levis Strauss,
Prada, Puma and Kenzo.
The Insolvency Service investigation found that the company:-
· was operated with a lack of commercial probity;
· was insolvent;
· provided misleading information to potential advertisers,
funders and subscribers;
· failed to maintain proper accounting records; and that
· at least eight employees and freelance journalists to the
magazines also went unpaid.
Notes to Editors
1 Sixty-Sixty Four Limited was incorporated
on 20 March 2007. Its registered office was recently changed from
92 Cromer Street, London, WC1H 8DD to Suite 40, The Market
Building, 191-195 High Street, Brentford, Middlesex, TW8 8LB. The
directors of the company throughout were Mr Roger Stephane Dhelens
and Mr Romain Dominique Ibanez. The secretary of the company until
1 October 2009 was Asiduus Limited.
2 The company’s business was creating and producing “niche”
magazines for men in French and English. The magazine UPstreet was
published in English and French and a further magazine Palladium
was produced for the UK market. Both titles are said to have been
published under licence from Mr Dhelens and Mr Ibanez.
3 The magazine UPstreet was initially published by Mr Dhelens and
Mr Ibanez in France before it was launched in the UK by Upstreet
International Limited (see 4 below). According to Mr Dhelens,
Upstreet International Limited published both the French and UK
versions and then Artwall Limited (see 5 below) began publishing
both versions of UPstreet with the “consent” of Upstreet
International Limited. Both companies were subsequently placed
into liquidation owing substantial amounts to creditors.
4 Upstreet International Limited (in liquidation) was
incorporated on 28 November 2000. Its registered office prior to
liquidation was at 107-111 Fleet Street, London, EC4A 2AB. The
directors of the company were Mr Roger Stephane Dhelens (who was
also company secretary from 27 May 2003 in succession to Ms Myriam
Coupard) and Mr Romain Dominique Ibanez. The company was placed
into Creditors Voluntary Liquidation on 4 September 2007 with no
assets and a reported deficiency of £248,222.
5 Artwall Limited (in liquidation) was incorporated on 7
May 2003. Its registered office prior to liquidation was at 92
Cromer Street, London, WC1H 8DD. The directors of the company were
Mr Roger Stephane Dhelens, Mrs Ariane Dhelens (until 30 October
2003) and Mr Romain Dominique Ibanez (from 20 March 2005). Mr
Ibanez was also company secretary from 20 March 2005 in succession
to Mr Jean Bernard Dhelens. The company was placed into Creditors
Voluntary Liquidation on 4 September 2007 with no assets and a
reported deficiency of £102,782.
6 On 4 January 2008 the liquidator of Upstreet International
Limited and Artwall Limited sold the goodwill of both companies to
Sixty-Sixty Four Limited for £9,400 and the company, under the
control of Mr Dhelens and Mr Ibanez, continued to publish UPstreet
and also published Palladium for the UK market.
7 Whilst mention of licences and agreements relating to the
arrangements for use of the intellectual property rights for
UPstreet and Palladium were made to the investigation, no
documents have been produced and although the rights in Palladium
are shown as belonging to Sixty-Sixty Four Limited in the
company’s draft accounts, they are in fact registered to Mr
Dhelens and Mr Ibanez. The company’s draft accounts also disclose
liabilities of £102,460 in relation to credit card debts although
again there is no documentation to show that the company had any
credit cards of its own.
8 The petition to wind up Sixty-Sixty Four Limited in the public
interest was issued in the High Court on 12 June 2009 under
section 124A of the Insolvency Act 1986. Meanwhile and
notwithstanding the presentation of the winding up petition a
meeting of creditors was convened on 30 June 2009 to consider a
Creditors Voluntary Arrangement at which the company disclosed
assets of £6,999 and liabilities totaling £274,711.The directors’
proposal was accepted by the company’s creditors and joint
supervisors were appointed to administer the scheme. The assets to
be introduced into the scheme were estimated to be £120,000
comprising monthly contributions of £2,000 by the company over a 5
year period.
9 At the first hearing of the winding up petition on 14 October
2009 the company opposed the winding up and directions were given
by the Court for the filing of further evidence. A three day
hearing was accordingly fixed by the Court to commence on 22 June
2010.
10 On 26 October 2009 the joint supervisors reported that the
proposals agreed at the meeting of creditors held on 30 June 2009
had not been complied with as the company had failed to make the
monthly contributions (a single payment of £2,000 only was made)
and formally confirmed that the Creditors Voluntary Arrangement
had failed and that there were insufficient funds to enable the
joint supervisors to issue winding up proceedings.
11 On 12 May 2010 the company filed dormant accounts for the year
ended 31 March 2009 and on 3 June 2010 filed dormant accounts for
the year ended 31 March 2010.
12 On 20 May 2010 the company, through its director Mr Dhelens,
stated that the company, while not agreeing to the grounds, no
longer opposed the winding up. The matter was duly heard by the
Court on 25 June 2010 and the company was ordered into liquidation
on grounds of public interest.
13 Company Investigations carries out confidential enquiries on
behalf of the Secretary of State for Business, Innovation
& Skills (“BIS”).
14 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. Further information about the work of The Insolvency
Service is available from http://www.insolvency.gov.uk
15 All public enquiries concerning the affairs of the company
should be made to: The Official Receiver, Public Interest Unit ,
Tel No 0207 637 1110: Email: piu.or@insolvency.gsi.gov.uk
Contacts:
Ade Daramy
Phone: 020 7596 6187
ade.daramy@insolvency.gsi.gov.uk
Denise Rawls.
Phone: 020 7674 6910
denise.rawls@insolvency.gsi.gov.uk
Insolvency Service
nds.insolvencyservice@coi.gsi.gov.uk