Lap dancing boss disqualfied from being a director

THE boss of a chain of lap dancing clubs has been disqualified from being a company director for 12 years following an investigation by The Insolvency Service.

Matthew Haycox, who ran The Provocative Group, a string of lap-dancing clubs trading as Wildcats, has signed a disqualification undertaking banning him from managing, controlling or being a director of any company until 2022.

The Insolvency Service found that Mr Haycox entered into trading transactions knowing his company was insolvent and could not pay for goods ordered.
 
Mr Haycox, of Alwoodley, Leeds, grew Provocative so it had a portfolio of Wildcats clubs in Barnsley, Blackpool, Birmingham, Harrogate, Huddersfield, Leeds and Wakefield.

However, all seven of Mr Haycox’s clubs were placed into administration on September 12, 2008, owing creditors an estimated £3m.

Mr Haycox was also the majority shareholder of Saltacres and was found by the Insolvency Service to have collaborated with Nicholas Warner, another Leeds-based director of Saltacres.

Mr Warner has also signed an undertaking banning him from being a director or in any way managing or controlling any company until 2018.

Saltacres, which traded from stores selling cut priced goods in Lancashire and Yorkshire under the name Waremart, was placed into creditors voluntary liquidation on September 29, 2008, with an estimated total deficiency of £2.7m.

The investigation found that in September 2008 Provocative ordered two lorry loads of chocolate, from a Swiss supplier and sent them a cheque for £52,585 in respect of a 50% down payment for goods. However, at the time there were insufficient funds in the company’s bank account to honour the payment.

Four days later, Mr Haycox issued another cheque for £11,415 to ‘pay’ the shipping agent for the Swiss order in respect of customs charges.

On receipt of the cheques the Swiss creditor shipped the goods and the shipping agent released the two truck-loads of goods which were delivered to a business park not connected to Provocative. The goods were immediately loaded onto another vehicle and could not be traced by the administrators.

Insolvency Service investigators also found that in August and September 2008 Mr Haycox caused Provocative and another company, Provocative Leisure (Harrogate), to order goods totalling £490,588, which were immediately sold to Saltacres, when he knew or ought to have known, that Provocative and Saltacres would be unable to pay for them.

Investigators also found, and Mr Haycox did not dispute, that April 16, 2008 Mr Haycox entered into a chattel mortgage in respect of a BMW 5 series motor vehicle with a cash price of £54,499, which was already the subject of a hire purchase agreement.

As a result of this when the vehicle was repossessed the second mortgagee had to refund the proceeds of sale of £12,600 to the original finance company, and was left with an unsecured loss of £36,691.

Vicky Bagnall, director of investigations for the Insolvency Service’s companies investigations team, said: “It is clear that both of these reckless directors went about their trading activities, collaborating together.

“In the full knowledge that their businesses were heading for formal insolvency they ordered hundreds of thousands of pounds of goods that they knew or should have known that they could not pay for.

“Other directors and members of the public should be reassured that The Insolvency Service works hard to remove dishonest and irresponsible people from the business environment to keep the UK a good place to do business.”