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09
Nov 2024
Administrators investigate loan account at failed Harrogate company Amvoc
Administrators have launched an investigation into a failed Harrogate company’s loan account amid transactions which require "further explanation".
Amvoc, a telemarketing company which was based at Cardale Park, collapsed and was placed into administration in March 2023.
At the time, employees at the firm were shocked to 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 an update published this week, Lewis Business Recovery and Insolvency, which were appointed administrators, said they had launched an investigation into the directors’ loan account.
Gareth Lewis, who is overseeing the administration, said the investigation was being carried out to determine if any “future realisations” could be made for creditors.
He said:
Following my initial review of the company’s affairs and books and records, I highlighted a number of transactions that required further explanation and evidence from the company directors to support their business needs. These investigations remain ongoing to determine whether there could be future realisations for the benefit of creditors.
In order not to prejudice ongoing investigations, no further information can be provided to creditors at this time. Creditors should note, however, that the joint administrators are currently in the process of taking legal advice in this regard.
The move comes as Mr Lewis said the Insolvency Service Redundancy Payments Service, which is handling redundancy claims as a result of the firm’s collapse, has reported £223,507.52 in claims from ex-employees.
However, he added that some former staff were still in the process of submitting claims to employment tribunals to receive judgement of sums owed.
As part of the process, former employees are classed as “ordinary preferential creditors”.
Gareth Lewis of Lewis Business Recovery and Insolvency.
Regardless, administrators expect to “pay a dividend” to former staff following the conclusion of the administration.
Meanwhile, administrators revealed that the company owes £1.2 million to HMRC, which is classed as a “second preferential creditor”.
This is made up of unpaid VAT and national insurance contributions.
In his latest report, Mr Lewis said he had also received claims of £1.6 million from trade and expense creditors, which are classed as “unsecured creditors”.
However, administrators said that it was unlikely that either second preferential and unsecured creditors would receive any payment based on current information.
History of Amvoc
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.
Amvoc’s clients included BP, Barclays, Virgin Media, Leeds Beckett University, and both the Conservative and Liberal Democrat parties.
When the Stray Ferret tried to contact Mr Brockway following the collapse of the company, an immediate email response said:
I regret to inform you that Amvoc has been forced to cease trading with immediate effect due to financial difficulties.
We understand that this news may come as a shock to many of you, and we want to assure you that we are doing everything possible to manage the situation.
We are in the process of contacting all our staff, clients and partners to inform them of the situation and provide any necessary information. We apologise for any inconvenience or disruption this may cause, and we are committed to minimising the impact on our stakeholders as much as possible.
Its website said it employed 450 staff but the Stray Ferret believes the figure at the time the company collapsed was under 300.
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