Calvin Robinson Chief Reporter, Author at The Stray Ferret

Ex-staff at failed Harrogate firm Amvoc set for liquidation payouts

Staff at failed Harrogate company Amvoc are likely to receive some payment following its collapse, administrators have said.

However, HMRC and unsecured creditors are unlikely to receive any money due to a lack of property.

The telemarketing company, which was based at Cardale Park, collapsed and was placed into administration in March this year.

Staff were left shocked on March 17 when they received a late night email from chief executive Damian Brockway saying “all our offices are closed with effect from tonight”. It went on to blame “covid debts”.

In a report published today, Gareth Lewis, Lewis Business Recovery and Insolvency, said the company would work to make a payment to staff as part of the administration process.

As part of the process, former employees are classed as “ordinary preferential creditors”.

However, HMRC, which is classed as a “secondary preferential creditor”, and unsecured credits are expected to receive no money.

Mr Lewis said:

“A dividend to ordinary preferential creditors appears achievable.

“However, it appears that there will be no property available to enable a distribution to secondary preferential or unsecured creditors.”

The company owed £1.2 million to HMRC, which included unpaid VAT, unpaid employees PAYE and national insurance, student loan deductions and industry scheme deductions.

In an administrators’ statement of affairs last week, it was also revealed Amvoc owed £546,534.71 to former employees against assets of £302,802.63.

It also has £868,267 worth of unsecured creditors. Among them is Hemel Hempstead-based data marketing firm, Aura Media Group, which is owed £154,467.38.

Mr Lewis said administrators would now work to make a payment to preferential creditors.

High staff turnover and winding up petition

Mr Brockway set up Amvoc, the trading name of A Marketing Vocation Ltd, from a small office in Dacre in 2010. It sold telemarketing services, initially in the legal sector, and grew rapidly, moving first to Pateley Bridge and then to large offices at New York Mills near Summerbridge.

It opened a new head office on Cardale Park in Harrogate in 2015, a facility in Leeds in 2018 and an office in Manchester in 2022. It also had plans to expand to London.

At the time of its collapse, Amvoc employed 230 staff.

Mr Lewis said in his report that in September 2017, the company entered into a company voluntary arrangement as a result of “cash flow difficulties” because of the loss of a major customer and “significant bad debt”.

He helped the company pay its creditors claims in full with interest, which was completed on March 31, 2020. However, this coincided with the start of the covid pandemic.

Gareth Lewis of Lewis Business Recovery and Insolvency.

Mr Lewis said the nature of Amvoc’s trade was such that it had “high fixed overheads”, a high staff turnover and that it was not equipped for the pandemic.

He said:

“It had a constant high turnover of employees, regularly having 20-30 employees leave and start each month.

“It was not equipped at the outset of the pandemic to facilitate working from home and also could not operate safely in the ‘call centre’ environment.”

In August 2020, despite the easing of restrictions, Amvoc’s offices were closed by Public Health England after 50 staff contracted coronavirus.

Meanwhile, many of the company’s customers held back on projects due to uncertainty of the pandemic. This led to the firm being unable to generate sales from telemarketing.

Between, April 1, 2020, and September 30, 2021, Amvoc reported a pre-tax operating loss of £1.7 million.

The following year, the company reported a pre-tax profit of £350,000. However, this was not enough to pay off debts.

Mr Lewis said:

“This was insufficient for the company to meet its debts as and when they fell due, most notably HM Revenue and Customs, who by this stage had increased pressure on the company.”

On March 13 this year, Mr Lewis attended Amvoc’s offices to discuss the company’s financial position.

He then contacted HMRC, who had indicated they would be passing a file to its solicitors to issue a winding up petition. This was formally issued on March 16.

The following day, a company director took the decision to inform staff that the company would no longer be trading.

Staff were told by Mr Brockway on March 17 that all Amvoc offices would be closed.

Amvoc’s clients included BP, Barclays, Virgin Media, Leeds Beckett University, and both the Conservative and Liberal Democrat parties.

Twenty-three former employees found work with Brighton-based One-Family, which was a former customer of Amvoc.

Meanwhile, Law firm Aticus said in the days after Amvoc’s collapse it had been contacted by 145 former employees.

The law firm said it was investigating the circumstances of the company’s collapse and concerns around how the redundancy process was managed, as well as whether ex-staff are eligible to claim for compensation.

Plan for 15 flats on former Pateley Bridge garage site rejected

A plan to build 15 flats on a former Pateley Bridge garage site has been refused.

Chartwell Barns Ltd has tabled the proposal to Harrogate Borough Council to build a three-storey block on the site of Daleside Garage on Bridgehouse Gate in April 2022.

The proposal included an electric vehicle charging point along with 27 car parking spaces.

A total of three one-bedroom, eight two-bedroom and four three-bedroom flats were included in the scheme.

However, North Yorkshire Council, which replaced the borough council on April 1 this year, has refused the plan.

In a decision notice, it said the scheme would result in the loss of employment space and that the developer had failed to prove that the site had been marketed for employment use.

It said:

“No evidence has been submitted to demonstrate that the site has been actively marketed for employment use or that continued use of the site for employment is no longer viable, or that smaller scale or alternative employment requirements cannot be accommodated on the site.

“Therefore, on the basis of the information submitted, it is considered that the proposed development would have an adverse impact on the quality and quantity of employment land supply.”

The council added that the development would be “unduly dominant and incongruous” within its surroundings and failed to provide an “acceptable level of privacy” to future occupants.

The decision comes as the former business on the site, Daleside Garage, has since moved in the town.

The firm has moved to brand new premises at Corn Close Farm on Low Wath Road.

Karley Haley, who owns Daleside Garage with her husband Glenn, told the Stray Ferret that the move helped to retain the MOT testing station, as well as servicing and repairs, in the town.

Business Breakfast: Harrogate beauty brand records improved profits

It’s time to join the Stray Ferret Business Club. Our next networking event is lunch at Manahatta, on June 29th at 12.30pm.

Don’t miss out on this chance to network with businesses from across the Harrogate district. Get your tickets by clicking or tapping here.

A Harrogate-based hair and beauty brand has recorded strong profit results for the last financial year.

CloudNine, which is based at Hornbeam Park, reported a turnover of £35 million and pre-tax profits of £8.6m – a 20% rise on 2021 – for the year ending December 2022.

The firm, which employs more than 60 staff at its headquarters in Harrogate, has credited its results to a combination of continued growth in the UK, significant growth in Australia and New Zealand and the strengthening of its online and in-store presence.

Martin Rae, chief executive of CloudNine, said:

“This is a very pleasing set of results which cements our position as one of the world’s leading hair and beauty brands.

“We are very proud of everything we have achieved, with the ultimate aim of providing the tools to help people feel like the best version of themselves, which is what we are most passionate about.

“We are also very passionate about the environment. We launched the industry’s first hair iron recycling scheme, which has saved over 2,800kg of hair styling tools from landfill so far.”

Business networking event to be held in Boroughbridge

A networking event is set to be held for businesses in Boroughbridge.

Held at the Crown Hotel on Thursday, June 15, the session will focus on supporting local firms.

It will also include guest speakers Alison Laws, business relationships manager at York and North Yorkshire Growth Hub, and Alice Ingram, business engagement manager at West and North Yorkshire Chamber of Commerce.

The event will start at 5.30pm with refreshments and networking and will include a question and answer session.

For more information on the event, contact the Boroughbridge and District Chamber of Trade here.

A third of callers give up on police 101 calls in North Yorkshire

North Yorkshire’s police commissioner has criticised the force after new figures today revealed more than a third of 101 calls were abandoned.

Statistics for April showed 16,939 non-emergency calls were made to North Yorkshire Police.

Of that number, the average answer time was five minutes and 27 seconds.

The force has a target to answer 90% of calls within 120 seconds. Last month, 60% were picked up in time and 34% were abandoned.

At a North Yorkshire Police online public meeting today, Zoe Metcalfe, the Conservative police, fire and crime commissioner, said:

“It’s just not good enough for the public at all that we are having a 34% drop-off rate here in 101.

“I really would like to know when are we going to see an improvement.”

The meeting can be viewed here.

The criticism comes after the commissioner awarded the force control room £1.8 million a year to improve response times.

Figures for 101 calls in April. Data: NYP.

The money was earmarked to fund the appointment of 36 additional communications officers, 12 additional dispatchers, six established trainers and two additional police inspectors.

Elliot Foskett, assistant chief constable at the force, said he was optimistic the performance would start to improve.

“We would agree, we think 34% is high. You will start to see an improvement, commissioner, with those resources landing in the control room.

“I can’t stress highly enough that we monitor this every single day. Not only within the chief officer team, but at the force daily management meeting and in the local meetings in the force control room.

“I am optimistic that by the summer time as we start to get more people in and towards the end of the summer, we will should see that come down. I absolutely understand the frustration when people are hanging on the phone and trying to get through to us as well.”

Meanwhile, Mr Foskett pointed to “massive improvements” in the force’s 999 response times.

The force control room answered 76% of calls over the last three months on time.

The figure is in stark contrast to November 2022, when just 44% of 999 calls were answered within that time frame.

However, it is still short of the police national target to answer 90% of calls in under 10 seconds.

Harrogate army college instructor sets up scheme in memory of Captain Tom Moore

A Harrogate Army Foundation College instructor has set up a charity scheme in honour of Captain Sir Tom Moore.

Corporal Robert Chamberlain set up the Project Give Moore scheme this year.

The aim of the initiative is for junior soldiers to set up their own fundraising events for any given charity with the chance of winning the Project Give Moore award.

Each junior soldier company will be tasked to compete to fundraise the most each year.

Mr Chamberlain, who first joined the British Army in 2012, set up the scheme after winning the college’s Captain Sir Tom Moore Award for Charitable Endeavour in 2021.

He said the idea behind Project Give Moore was to create an initiative that raises more money for more good causes.

Mr Chamberlain said:

“I wanted to create an annual event that would bring the whole college together in support of different charities.

“But it wasn’t just about raising funds or donating money, I wanted to show the junior soldiers, those who were just starting their military careers, the incredible impact of charity work and selfless commitment.”

The scheme is in honour of Captain Sir Tom Moore, who raised funds for NHS charities by walking lengths of his garden in Bedfordshire during the covid pandemic.

He died aged 100 in February 2021.

Captain Sir Tom was made honorary colonel at the Army Foundation College in 2020 and a memorial walkway opened at the college in July 2021.

Corporal Robert Chamberlain receives the Sir Tom Moore Award in 2021.

So far, Project Give Moore has Macmillan Cancer Support, Cancer Research UK, ABF The Soldiers’ Charity and The Armed Forces Charity as its chosen causes.

All the charitable events will take place at the Army Foundation College on Harrogate’s Penny Pot Lane.

However, Mr Chamberlain said he would be open to hosting events elsewhere should there be enough public interest.

For more information on how to donate or get involved with the scheme, visit the Project Give Moore website here.

Knaresborough housebuilder denies contravening health and safety regulations

A Knaresborough housing company has denied breaching health and safety regulations.

Ilke Homes Ltd is set to go to trial at York Crown Court after a prosecution was brought by the government’s Health and Safety Executive.

The company was charged with one count of contravening a health and safety regulation on December 12, 2018.

At a hearing on April 26 at York Crown Court, the firm denied the offence.

The company will appear again at the court on March 4, 2024, for trial.

Ilke Homes, which employs 500 people, specialises in building modular homes.

The company builds the homes at its factory on Flaxby Moor Industrial Estate near Knaresborough. The homes are then delivered across the UK.

Business Breakfast: Local firms sponsor Harrogate International Festivals

It’s time to join the Stray Ferret Business Club. Our next networking event is after-work drinks at Manahatta, on May 25th at 5:30.

Don’t miss out on this chance to network with businesses from across the Harrogate district. Get your tickets by clicking or tapping here.

Two Harrogate companies have announced sponsorship contracts with Harrogate International Festivals.

Harrogate Family Law, which is based at Victoria Avenue, has signed up as premier partners for the festivals alongside Rudding Park, Nicholls Tyreman and Theakston.

Meanwhile, IT company Croft Communications has agreed to be communications partner for the event.

Andrew Meehan, managing director at Harrogate Family Law, said:

“We are delighted to be renewing as a premier partner and supporting the festivals for another year. Harrogate International Festivals is renowned for putting on a selection of world class entertainment with some of the best industry talent.”

Sharon Canavar, Harrogate Festivals chief executive, pictured with Mark Bramley, CEO at Croft Communications.

Mark Bramley, Croft Communications chief executive, said:

“As a new sponsor, our business is proud to be playing a part in the line-up of exciting events Harrogate International Festivals is due to be hosting.

“We look forward to seeing the amazing cultural experiences brought to life in Harrogate this year.”

Company sponsors Boroughbridge Junior football team

A Boroughbridge company has agreed a sponsorship deal with a local junior football team.

The Martin Bell Partnership, which provides strategic and practical support for healthcare, has sponsored Boroughbridge Juniors Under-16s boy’s football team.

It will see the squad wear the company logo on their kits next season.

Borougbridge Juniors Under-16s.

Martin Bell, owner of the company, said:

“I am delighted to be able to support the team with sponsorship. They have had a solid year and can look forward to the new season with a strong squad of local lads who love their football.

“The new kits will provide a boost to the players and give them confidence as they compete in the Harrogate and District Junior League and regional cup competitions.”

Chris Fahy, Boroughbridge Juniors FC chair added:

“Without the support of the community and sponsorship from organisations like The Martin Bell Partnership we would not have such a thriving club, so we thank them for their support.

“That support allows us to provide football experiences for more than 150 children at the club aged six to 18 years.”

Harrogate hospital pledges to maintain services amid junior doctors’ strike

Harrogate District Hospital has pledged to ensure services are maintained ahead of a planned 72-hour walkout by junior doctors.

The British Medical Association announced it will take action after talks with government over a pay increase broke down.

Staff will walkout at 7am on Wednesday, June 14, until 7am on Saturday, June 17.

Officials at Harrogate and District NHS Foundation Trust have said that a “strike planning team” will be set up to maintain services during the industrial action.

Patients will be urged to attend appointments as normal unless contacted to reschedule.

A spokesperson for the trust said:

“In response to the recent announcement that junior doctors, who are members of the British Medical Association (BMA), are set to undertake 72 hours of industrial action in June, we will be establishing a multi-professional strike planning team to develop plans to ensure essential services can be maintained on the strike days, and to minimise as much as possible any impact on our services, staff and patients.

“Patients should continue to attend appointments as planned unless contacted to reschedule. We will be re-arranging any postponed appointments as a priority. We appreciate this situation is frustrating for patients affected and apologise for any inconvenience caused.

“Nobody should put off seeking urgent or emergency care during the strike, and key services will continue to operate.”

The walkout will be the third time junior doctors have taken strike action this year.

In April, 470 appointments and 21 operations were cancelled and rescheduled at Harrogate District Hospital as a result of the second round of strikes.

The move comes as the BMA described the latest government pay offer of a 5% increase for junior doctors as “in no way credible”.

Dr Vivek Trivedi and Dr Robert Laurenson, co-chairs of the BMA junior doctors committee, said the government “would simply not accept the fundamental reality of the pay cuts” staff had faced.

It is disappointing that @BMA_JuniorDocs have decided to call for more strike action.

We made a fair and reasonable offer, and were in active discussions on a range of issues.

I am still keen to continue talks if these hugely disruptive strikes are called off.

— Steve Barclay (@SteveBarclay) May 22, 2023

In response, Steve Barclay, health and social care secretary, described the news of the walkout as “disappointing”.

He said:

“We made a fair and reasonable offer, and were in active discussions on a range of issues.

“I am still keen to continue talks if these highly disruptive strikes are called off.”

Council set to loan £500,000 to Harrogate housing company

North Yorkshire Council looks set to loan £500,000 to a Harrogate housing company to cover “high expenditure costs”.

Bracewell Homes was set up by Harrogate Borough Council in 2019 but is now fully-owned by North Yorkshire Council following this year’s local government shake-up.

It was created to generate a profit for the council and to intervene in Harrogate’s pricey property market by delivering much-needed rental and shared ownership homes at affordable prices.

It is currently marketing two-bed properties at Hughlings Close, Green Hammerton, and two and three-bedroom homes at The Willows on Whinney Lane in Harrogate.

However, the company requires a “drawdown” in order to cover high expenditure going into this financial year.

Council officials said it would cover costs before “high income amounts” are received.

A report due before North Yorkshire Council’s executive on Tuesday will recommend approving the loan.

It says:

“A drawdown of £500,000 is now required urgently in order to pay final invoices on sites that Bracewell are already in contract for.

“The loan will cover the high expenditure costs forecast for the beginning of the year before the high income amounts start to be received.”

The Stray Ferret asked North Yorkshire Council which sites the loan is designed to pay invoices for and when it expects the sum to be repaid, but did not receive a response by the time of publication.

The move comes as questions have been raised over the performance of Bracewell Homes.

Last year, the company paid no dividends despite the now-defunct borough council budgeting to receive £267,000.

At the time, Paul Foster, who was head of finance at the council, said the company was still “extremely profitable” and that it had continued to sell properties, although at a smaller percentage of shares than expected.

He said:

“The company isn’t able to pay a dividend this year and the reason for that is a proportion of the shared home properties it has sold have been at shares of 25% and 30%.

“It would need to have sold shares of up to 50% for them to have enough cash to provide a dividend.

“In December, four or five properties were sold at a lower share than the company was forecasting and as a result there is less cash in the company.

“The company is not underperforming in particular. It is just not selling the larger shares which make it more cash rich.”

‘Summary’ of never-published £85,000 Ripon regeneration plan to be released

North Yorkshire Council is set to produce a “summary document” for a long-delayed project which aimed to present a new vision for Ripon.

The Ripon Renewal scheme was set up to produce a masterplan for the regeneration of the city.

The former Harrogate Borough Council commissioned Bauman Lyons Architects to draw up the vision at a cost of £85,000 in 2021.

The company was tasked with producing funding options and a business case for Ripon to bid for money for regeneration projects.

However, the project failed to produce a blueprint for the city some two-and-a-half years after it started.

Officials at North Yorkshire Council, which has since taken over the scheme, said an agreement could not be reached with the contractor after talks to extend the contract.

When the Stray Ferret asked for an update on the status of the Ripon Renewal scheme, Nic Harne, corporate director for community development at the council, said it remained committed to regenerating Ripon, adding:

“The Ripon Renewal project took much longer than had been envisaged when it was set up.

“This meant it was necessary to enter into discussions with Bauman Lyons Architects about a variation of the contract to complete the work. An agreement on the terms could not be reached and the contract has now ended. The project cost remained within the contracted budget.

“Our officers have now carried out a review of the work undertaken and have brought together a summary document, which will be circulated to stakeholders within the project group soon.

“The document will include information about the projects and opportunities for taking the ethos of the Ripon Renewal project forward.”

Councillors in Ripon previously described the delay in the scheme as “absolute nonsense”.

At a council meeting in March, Cllr Andrew Williams, who represents Ripon Minster and Moorside on North Yorkshire Council, said:

“It’s astonishing that we’ve spent £85,000 of public money to get nothing, not even a draft executive summary from a consultant — that’s how bad this is.

“A lot of time has spent on this by organisations in the city but it’s fallen off a cliff-edge. It’s an absolute nonsense.”

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