More administrations at People to People Group

THREE more companies that are part of the failed People to People financial services group have gone into administration as an investigation into the the collapse continues.

It follows the appointment of administrators in April who are looking into the conduct of directors, including defacto and shadow directors, after it was discovered one senior manager was working at the business while banned from running a company for eight years.

Defacto and shadow directors are terms used to describe senior management figures who carry on as directors without being formally appointed.

A creditors’ report relating to the April administrations, compiled by Andrew Rosler of Bolton-based Ideal Corporate Solutions, states that an investigation “indicates that there are grounds to bring actions against such officers for various breaches of the Companies and Insolvency Act and related statutes. It is possible that such actions may result in criminal proceedings.”

Gordon Craig of Refresh Recovery was recently appointed to People to People Holdings, Money Return and Success Only. They were the last active parts of the group following the administration of some seven companies in April, including parent People to People Group, document signing firm Quickdox, and PPI claims firm Credit Agreement.

Around 100 staff lost their jobs and some of the companies have already moved into liquidation. People to People, which is owned by Mark Butterwick, failed owing creditors £2.5m.

According to the creditors’ report the business had previously traded well and was planning expansion, but in late 2012 senior managers, Mark Butterwick and Paul Brackenridge, “were being put under increasing pressure from the operations directors of the various group companies”.

“The latter alleged that they had little or no control over the individual companies they were appointed directors over and that liabilities had started to increase. In order to formalise these concerns, a group board meeting was arranged that was attended by the companies’ solicitors. Following this meeting, various individual group company directors expressed a desire to resign and ultimately a number of directors left under compromise agreements.

“In addition, in November 2012 it was discovered that Paul Brackenridge was in fact a disqualified director. He had been with the group since April 2011. Internal investigations were made by the company into Paul Brackenridge’s conduct and activities and he was subsequently suspended by the company pending an ongoing enquiry.”

Amongst the firm’s debts was a £1.2m HM Revenue & Customs liability that Mr Brackenridge had told the board was more like £400,000. The company also came under pressure from inter-company loan accounts and its landlords.

Mr Butterwick called in Ideal Corporate Solutions which was trying to sell the group but interest faded after news of the company’s problems got out. Two of the businesses, Quickdox and Wise Appointment, were sold with some assets to the former landlords for £175,000.

Paul Brackenridge was banned for eight years in February 2008 for his role in the collapse of vehicle leasing business Acuma Capital. Companies House records show he was company secretary at the Salford developer Wrightchoice Developments until January 2010. Wrightchoice failed in 2011.