Two linked West
Midlands companies that operated a charity collection scam have
been wound up in The High Court following an investigation by the
Companies Investigation team of The Insolvency Service.
The investigation found that Air Ambulance Recycling Limited and
E&N Textiles Limited had a common director and targeted
residents across the UK, but primarily in the West Midlands, via
‘Charity bag’ drop offs and collections.
The companies operated in the same manner and made misleading
representations that the proceeds raised from the onward sale of
unwanted clothing would be donated to local air ambulance
charities but no evidence of donations made to any Air Ambulance
Charity was found.
The companies also attempted to pass themselves off as authorised
collection agents by making charity bag drops in residential
areas, with attached leaflets bearing similarities to the logos of
official air ambulance charities. At no time throughout their
trading histories were they ever authorised by any air ambulance
service to act as charity fund raisers.
Some of the bags are still unaccounted for and The Insolvency
Service is asking people to destroy any bags they may have
received bearing the logos of these two companies.
The activities of the companies were also found to be not only
misleading but in breach of regulations contained in the House to
House Collections Act 1939 concerning door to door leaflet
dropping where charitable purposes are included.
Essentially, the Act requires companies conducting collections
for charitable purposes to obtain a licence. Neither of the
companies had done so.
Investigation Supervisor, Alex Deane, warned;
“In winding-up these companies, the Court has sent
a clear message that it is unacceptable to mislead the public
and exploit their goodwill towards emergency services and the
Insolvency Service will seek to have such companies closed
down”
“We are also aware that these companies ordered a
significant quantity of collection bags for distribution whose
whereabouts are currently unknown. If you do receive collection
bags bearing the names of either of these companies please
destroy them so that they cannot be used again”.
Ends
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Notes to Editors
1. The registered office of Air Ambulance Recycling Ltd is at
236 Lozells Road, Birmingham, B19 1NP. This was also previously
the registered office of E&N Textiles Ltd until it was
changed to 568 Moseley Road, Birmingham. 2. Petitions seeking the
winding up of the companies were presented under s124A of the
Insolvency Act 1986 on 27 March 2012. The petitions were heard on
22 May 2012, at which time the companies were wound up. 3. Company
Investigations, part of the Insolvency Service, carries out
confidential enquiries on behalf of the Secretary of State for
Business, Innovation and Skills (“BIS”). 4. 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
www.bis.gov.uk/insolvency. 5. All public enquiries concerning the
affairs of the companies should be made to: The Official Receiver,
Public Interest Unit, Area 2.4, 21 Bloomsbury Street, London WC1B
3SS., email piu.or@insolvency.gsi.gov.uk 6. Media Enquiries should
be directed to: Kathryn Montague, Media Relations Manager,
Telephone 020 7674 6910 or Ade Daramy, Press Officer on 020 7596
6187
Contacts:
Ade Daramy
Phone: 020 7596 6187
ade.daramy@insolvency.gsi.gov.uk