Firm which failed to deliver more than £3m worth of Christmas presents wound-up by courts
Two companies which failed to supply over £3m of popular toys and gadgets in time for Christmas have been wound-up in court.
Advance Tech (UK) Limited of Rochdale and Chorley, and Clever Technology Limited, of Bridgtown, Cannock, have been wound-up in the High Court in Manchester.
The Official Receiver has been appointed as liquidator.
The court heard that Advance Tech traded in computer parts and gadgets using the trading name ‘Advance Technologies’ before trading with Clever Technology in 2016.
In November 2016 a website called savvibuy.co.uk was created to sell in-demand tech such as games consoles and virtual reality headsets for Christmas.
The website received a large number of orders and, while most went unfulfilled, Advance Tech – previously known as Advance Games Esports Organisation – took payment via a merchant services facility for 30,000 of them.
Advance Tech then transferred more than £3.4 million to Clever Technology for the goods, who in turn paid the funds to a third company based in Dubai.
No goods were ever received in exchange and later investigations determined that, in Dubai, the funds had been withdrawn in cash.
Customers, alarmed when their Christmas presents had not been delivered as promised, contacted Advance Tech and were told that goods would be with them in time for the festivities.
When they didn’t turn up, customers were then told by Advance Tech in January 2017 to request a chargeback through their bank.
This resulted in the merchant services facility suffering a loss of £2.9m.
A further estimated £1m is still owed to customers who paid via debit card.
Scott Crighton, chief investigator for the Insolvency Service, said: “These companies ruined the merriest time of year for so many families, whose children and loved ones were left empty-handed on Christmas morning.
“Thankfully their actions have caught up with them and, through petitioning the Court to shut the companies down, we have prevented them from causing further misery to unsuspecting customers.
Clever Technology initially prepared to defend the winding-up petition, but withdrew its evidence the week before trial.
The order was handed down on the first day of the hearing, 7 May 2019.
