DTI shuts down companies after publicans' complaints

The department of Trade & Industry (DTI) has started its clampdown on the first raft of rogue recruitment companies.​ Three companies based in West Yorkshire, which lured potential publicans into paying substantial fees by offering to train them to run licensed premises and assuring a placement in a pub of their choice, have been shut down following cases in the High Court.

Harborough Ltd, Yorkshire Boost Ltd and Downtown Management Ltd were wound up on February 7, 2005 at the request of the DTI.

An investigation by the government department found that these companies had made misleading statements in their training contracts, suggesting that placement in a pub was guaranteed within a six-month period of licensees completing their training. They were also found guilty of failing to maintain adequate accounting records and failing to file accounts.

At the end of January the DTI launched a probe into the raft of recruitment and training companies, following an exclusive investigation by The Publican. The Publican continues to hear from would-be licensees who claim they have not been found pubs despite paying out thousands of pounds after being guaranteed a placement and training.

Diane Bartnik (pictured)​ and her partner Peter Lyon paid £3,775 to one of the companies after she was promised a rural pub with food trade but was offered a disco pub in Leeds instead. "I think this is great news. It's about time this happened. The sooner these companies are stopped the better. People need to be more aware about these companies. People go in blind and are being ripped off," she said.

Donna Andrews paid £4,100 to a similar recruitment company which advertised in the national press and was never found a pub.

"It really does need stopping. They were so convincing. I think it is a positive move that the DTI is acting. These companies are taking money from people who are quite vulnerable," she said.

Bridget Chase, deputy inspector of companies at the DTI, told The Publican in January that she believes these companies could be breaking employment standards and says pub companies could also come under scrutiny for using them.

• The Official Receiver was appointed liquidator of the companies. Any licensees who have dealt with these companies should contact the Official Receiver at the following address: The Official Receiver, Public Interest Unit (North), PO Box 326, Boulton House, 17-21 Chorlton Street, Manchester, M60 3ZZ - Telephone: 0161 934 5465
• How to complain to the DTI - send information to: vetting.section@dti.gsi.gov.uk or write to: Vetting Section, Companies Investigation Branch, DTI Rm. 701, 10 Victoria St, London SW1H ONN.