‘No clever scheme’ used by the Ball footwear family

THE Ball family, who were behind the original Tommy Ball’s shoe business in Blackburn, have argued in court that there was nothing improper about the way they transferred assets between various companies.

The family, from Preston and Clitheroe, is fighting an attempt by the Department for Business to wind up two of their businesses, Baer Ltd and Hyper Investments, in the public interest.

Following a probe by the Companies Investigations Branch of the Insolvency Service, the Government claims the family moved assets through four different companies – Ball Shoes, Rebell Holdings, Baer and Hyper – to avoid paying creditors.

During the trial at Manchester’s Civil Justice Centre on Friday Olivier Kalfon, representing the family, said: “The cash circulation theory fundamentally ignores the situation where we have real loans to Rebell and repaid to [Baer director] Judith Ball via the Terence Ball loan account. It ignores the fact these real loans were transfered to Baer and used to buy stock.”

Judge Pelling pointed out that payments to Judith Ball from Rebell would have disadvantaged creditors if this had happened when the company was insolvent.

Mr Kalfon said: “It’s up to the Secretary of State to set out the case properly and if they’re alleging the company was insolvent at the time the payments were made it’s up to them to show that.”

He added: “It can’t be said that this was some clever scheme. Katherine Turner [a Baer director] has never suggested it was anything other than what it looks like. These were online transfers and a glance at bank statements reveals the sums that were paid.”

Mr Kalfon said later payments from Baer to Judith Ball were not detrimental to the business because the cash was used by Hyper Investments to make purchases from Baer.

The Government also alleges that Terence Ball was involved in Baer in breach of a nine-year director disqualification he received in 2006.

Tommy Ball became well-known in Blackburn in the 1970s and ’80s for building up a significant footwear business from scratch. He sold up and retired to the Isle of Man in 1986 and died in 2008. The business continued to carry his name until it went into administration two years ago.

Proceeding.