In this article, which is part of a series on the 12 stories in the Harrogate district that shaped 2023, we look at some of the larger companies that ran into difficulties over the year.

What could loosely be termed “economic headwinds” have caused trouble for thousands of companies around the UK in recent years, and in 2023 the storm hit several large local employers. 

Some were rescued, but others sank without trace. Here, we take another look at some of the bigger companies that hit the rocks over the last 12 months. 

Amvoc

Back in March, as many as 230 people lost their jobs after Harrogate telemarketing company Amvoc crashed into administration.  

Amvoc’s clients included some big names, such as BP, Barclays and Virgin Media, as well as the Conservative and Liberal Democrat parties. 

But administrator Gareth Lewis, of Lewis Business Recovery and Insolvency, said in his report that the company had entered into a company voluntary arrangement in 2017 due to “cash flow difficulties” because of the loss of a major customer and “significant bad debt”. 

Amvoc’s former head office on Cardale Park in Harrogate.

Amvoc paid off the bad debt, but only just in time for the start of the covid pandemic. The company, which had unusually high staff turnover – 20 to 30 employees left and started each month – couldn’t cope with lockdown, and even after restrictions were eased, its offices were closed by Public Health England in August 2020 after 50 staff contracted coronavirus. 

Meanwhile, many of Amvoc’s customers held back on projects due to uncertainty caused by the pandemic, leading to an unsustainable trading position. 

Farmison

In April, high-end butcher Farmison went into administration, threatening the jobs of its 100 or so employees. This time, though, the story had a happier outcome.  

The Ripon-based firm, which was founded by John Pallagi and Lee Simmons in 2011, had an impressive client list that included Harrods, Fortnum & Mason, Selfridges and Michelin starred restaurants. 

Major cashflow problems saw it fall into administration with debts of £7 million, but it was quickly bought out of administration by a consortium led by Andy Clark, former chief executive of Asda, for an undisclosed sum. 

Farmison is now back in business, with a leaner staff of 60 under former Marks & Spencer managing director Andy Adcock as chief executive. It relaunched its Cut by Farmison butcher’s shop at its Ripon headquarters earlier this month, plans to open more shops in a bid to diversify, and aims to increase annual turnover to £20 million. 

Black Sheep Brewery

Challenging economic conditions were also behind the difficulties that corralled Black Sheep Brewery into administration in May. 

The Masham company headed off what it called a “local employment catastrophe” by selling out to London investment firm the Breal Group for £5 million, saving about 50 jobs, including that of chief executive Charlene Lyons. 

Black Sheep Brewery’s CEO, Charlene Lyons.

Ms Lyons said that Black Sheep was not the brewing industry’s first casualty and warned it would not be the last. Speaking in June, she said: 

“In the last 12 months, 45 breweries entered insolvency in the UK, a three-fold increase on the previous year, as the cost-of-living crisis has squeezed household disposable income. 

“This has had an extreme and adverse effect on all brewers’ sales, at a time when their own costs and inflation are high. Black Sheep has not been immune to these factors, leading it to the administration process. It is highly likely that many more will follow in the coming months.” 

Ilke Homes

Around 1,100 people lost their jobs when Ilke Homes collapsed into administration in June, owing nearly £400 million to more than 300 creditors. 

The company, which manufactured modular housing in a huge factory at Flaxby, near Knaresborough, had been toasted as a stand-out success story on the region’s business landscape. 

Established in 2017, it built up a client base that included major institutional investors, housing associations, developers and local councils.  

In 2021, Ilke Homes raised £60 million in investment, and a year later, it raised a record-breaking £100 million from new and existing shareholders, following successive years of triple-digit growth. 

But despite a healthy-looking order book, it eventually ran into financial difficulties it attributed to “volatile macro-economic conditions and issues with the planning system”.   

The company said it needed additional funding to build its £1 billion pipeline of 4,200 new homes, but that wasn’t forthcoming, and so it was forced to fold. 

Most creditors saw little or nothing of their investment, including government-owned Homes England, which is believed to have received just 0.01% of the £68 million it was owed. 

The demise of one of the area’s largest employers was naturally not without drama. More than 600 employees took legal action over the way the redundancy process was managed, hoping for compensation of up to eight weeks’ pay. 

And in August – just two days after the firm’s assets had been auctioned by administrators – thieves stole “a large amount of equipment” from its factory, just off junction 47 of the A1(M). Bizarrely, they even refused to leave the site and continued to load up vehicles, even after the police arrived on site. Investigations are believed to be ongoing.

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Unsecured credits and HMRC are unlikely to receive any payment after the collapsed of failed Harrogate company Amvoc, administrators have said.

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

In a latest administrators report published this week, Gareth Lewis, Lewis Business Recovery and Insolvency, said it is anticipated funds will be available to pay former staff.

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

According to the report, employees are owed £233,507.52 in wages, holiday pay and pension contribution arrears.

Meanwhile, HMRC is owed £1.1 million in unpaid VAT, unpaid employees PAYE and national insurance, student loan deductions and industry scheme deductions.

Mr Lewis said in his report that it is unlikely that any repayment will be made.

He said:

“If funds are available to pay a dividend to the secondary preferential creditors, this claim will be adjudicated accordingly.

“However, at present, it is not anticipated that there will be sufficient funds to do so.”

Mr Lewis added that there was “no likelihood” that unsecured creditors, who were previously estimated to be owed £868,267, would receive payment. 

According to the report, equipment from the company’s old offices on Cardale Park, such as computers, desk and chairs, had now been sold.

‘Cash flow difficulties’

Damian 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.

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

Mr Lewis said in his administrator’s 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”.

Read more:

• Administrators reveal state of Harrogate firm Amovc’s finances
• Hundreds of job losses as Harrogate company goes under
• Collapsed Harrogate firm Amvoc set to enter administration

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.”

Read more:

• Administrators reveal state of Harrogate firm Amovc’s finances
• Hundreds of job losses as Harrogate company goes under
• Collapsed Harrogate firm Amvoc set to enter administration

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. 

Administrators have revealed the state of failed Harrogate firm Amvoc’s finances.

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”.

A statement of affairs published by administrators Lewis Business Recovery and Insolvency showed the company owes £546,534.71 to preferential creditors against assets of £302,802.63.

This includes wage arrears, holiday pay and pension contribution arrears.

The company also owes £1.2 million to HMRC, which is classed as a “second preferential creditor”.

It also has £868,267 worth of unsecured creditors.

Hemel Hempstead-based data marketing firm, Aura Media Group, is owed £154,467.38 and is among the highest creditors on the list.

Founded in 2010

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.”

Read more:

• Law firm to represent about 100 staff at failed Harrogate firm
• Hundreds of job losses as Harrogate company goes under
• Collapsed Harrogate firm Amvoc set to enter administration

Its website said it employed 450 staff but the Stray Ferret believes the figure at the time the company collapsed was under 300.

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

Meanwhile, Law firm Atticus 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. 

A Brighton firm has hired 23 former staff members of failed Harrogate telemarketing firm Amvoc after setting up a new office.

The company, which was based at Cardale Park, entered administration on Friday after abruptly closing its offices last month citing “covid debts” as the cause.

Up to 450 people lost their jobs as a result of the move.

However, One Family, a financial firm based in Brighton, said today 23 former Amvoc staff had started work at its new call centre in Leeds on Monday.

One Family was a customer of Amvoc before it entered administration.

Matthew Ellis, sales and marketing director, said:

“We were saddened to hear of the closure of Amvoc, which is a company that we have worked with for three years.

“We were worried about the talented team who had been working so hard for us during that time. We wanted to help them and swiftly put plans in place – sending colleagues to Leeds to find new office space, meet the team, unpack kit and make the seemingly impossible possible. We set up a fully operational call centre in just eight days.

“It was a very quick turnaround, but I’m absolutely delighted to welcome our new Leeds team members to One Family.”

Read more:

• Law firm to represent about 100 staff at failed Harrogate firm
• Hundreds of job losses as Harrogate company goes under
• Collapsed Harrogate firm Amvoc set to enter administration

The move comes as Leeds-based Lewis Business Recovery and Insolvency has taken over as administrators of Amvoc.

Director of the firm, Gareth Lewis, and Matthew Russell have been appointed joint administrators.

Law firm Atticus said in the days after Amvoc’s collapse it has been contacted by 145 former employees.

The law firm says it is 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. 

An insolvency firm has been appointed to handle the process of placing failed Harrogate firm Amvoc into administration.

Staff at the telemarketing firm were left shocked on Tuesday night 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”.

Law firm Aticus Law has now been contacted by 145 former employees as it investigates 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.

Gareth Lewis, director of Leeds firm Lewis Business Recovery and Insolvency, said today it was handling the administration process.

He said:

“I can confirm that following the directors’ decision to make all employees redundant on Tuesday evening, this firm was engaged on Wednesday to assist with the process of placing the company into administration.

“It is anticipated that the company will be placed into administration in the coming days, and we are now collating all financial and employee information to enable us to perform our duties.

“We have contacted former employees through our agents IPERA, who will assist employees with the process of making their claims through the government’s Redundancy Payments Service”.

Founded in Dacre

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. 

Its website said it employed 450 staff but the Stray Ferret believes the figure at the time the company collapsed was under 300.

Read more:

• Law firm to represent about 100 staff at failed Harrogate firm
• Hundreds of job losses as Harrogate company goes under

We again attempted to contact Mr Brockway today. An immediate emailed response said: