Court winds up Yorkshire sports company that failed to deliver

A YORKSHIRE-based company which received advance payment from customers for sports equipment it then failed to supply has been wound up in the High Court following an investigation.

Argos Sports (UK) Ltd, which has no connection with the high street retailer Argos, sold sports equipment through a website after an associated company, Argos Sports Limited, went into compulsory liquidation in July 2008 with estimated debts of 1.18m.

The High Court found a "lack of transparency" in the control of the companies and was told directors could either not be traced or explain how they were run.

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The court heard numerous complaints had been made by customers to the Office of Fair Trading during a period when the ownership and control of the company could not be established.

The complaints typically involved the firm's failure to supply goods which had been paid for in advance.

The company, which was registered to an address at Listerhills Science Park, Bradford, produced no accounting records during the investigation to explain how its income of 1.8m was spent.

Colin Cronin of The Insolvency Service, which led the inquiry, said: "Companies that deliberately set out to mislead customers and fail to produce the goods and services they claim to offer undermine the confidence the public has in business.

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"We regard this as serious misconduct and the action taken in this matter sends a clear and simple message to company directors - if you run a business that seeks to cheat customers and trading partners you will be closed down."

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