Clothing firm director receives nine-year ban

THE director of a Manchester-based clothing company which ran up debts of over £1.2m before its collapse in July 2009 has been banned from running companies for nine years.

Colin Cardwell, 57, who ran Corporate Identity (Clothing) Ltd of Plymouth Grove, Manchester, has given an undertaken not to manage, control or become a director of any company until 2020 following an investigation by The Insolvency Service.

Corporate Identity (Clothing) provided promotional clothing to the drinks industry, but the insolvency service found that the company had breached the terms of its invoice discounting facility, leaving him owing his bank £1m.

The Insolvency Service’s Companies Investigations North team found that the company had made claims for sales of at least £840,000 for which there was no evidence of their existence in the company’s accounts.

He has agreed to repay £450,000 in full settlement in respect of his guarantee liability for the shortfall.

Claire Entwistle, director of Company Investigations North, said: “The director of this company set out to gain financial advantage for his business by misleading its bankers.

“The business community can be assured that The Insolvency Service will take robust action when it becomes aware of such behaviour.”