Inn Direct forced to close after 'misleading' clients

An Insolvency Service investigator has claimed that the pub industry is still plagued by rogue recruitment firms who fleece would-be licensees.

His comments come after Bradford-based recruitment and training firm Inn Direct was wound up following an investigation by the Insolvency Service's Companies Investigation Branch (CIB).

Inn Direct Limited claimed to offer a unique high-quality recruitment and training service for people looking to manage pubs.

Clients were induced to pay an upfront fee of £5,000 plus VAT for services that included training and guaranteed placements of their choice from a selection of 1,000 pubs.

During its investigation, CIB found that Inn Direct Limited had misled its

clients.

The company's promises of customer choice and a

placement were not guaranteed because Inn Direct Limited could only find placements in a limited number of pubs.

These pubs were operated by various companies already under the control of an associated company, from which Inn Direct Limited had taken over the recruitment business.

CIB's investigation also found that the company failed to keep adequate accounting and general records.

This made it impossible to establish the full extent and nature of the company's income and expenditure or determine if it had placed all its clients in pubs.

A spokesman for the Insolvency Service said: "The people behind this firm are quite notorious. The experience it was offering people in pubs for £5,000 was not good value for money.

The only director of Inn Direct was Graham Richard Ridgeway, not someone who would be a director in any other circumstance. He was simply a frontman who didn't have a clue."

recruitment malpractice shatters potential licensees' hopes

A couple of would-be licensees say they have been put off entering

the trade after falling victim to Inn Direct.

Philip and Somporn Gunthrie paid the firm £5,000 to find a dream pub early last year after seeing an advert in The Sun. But one of the pubs needed "a lot of work" and the other two were rat-infested and "complete dumps", with broken windows and dilapidated interiors.

The Gunthries also complained of having been treated "like skivvies" during their two week training course at the Branston Arms near Burton-on-Trent in Staffordshire.

They were promised training across a range of areas including cash handling and health and safety. But the couple spent most of their time cleaning.

They have been trying to get their money back since the Morning Advertiser highlighted their plight last September.

The Gunthries were only sent a copy of their contract after their story appeared in the Morning Advertiser. "My solicitor had a look at the contract and said, 'I think you've been conned'," Philip said this week.

He said their solicitor has sent around 12 letters to Inn Direct threatening legal action if the couple's money was not refunded. But Inn Direct never replied.

Despite being granted legal aid, Philip estimates their legal fees could top £1,000.

Meanwhile, Philip has returned to his previous job as a welder. He said he was about 70% sure that he would not try to take on a pub again after his experience with Inn Direct.

"I would like to go into the trade, but this experience has really put us off," said Philip.

rogue recruiters exposed by tv

A TV documentary broadcast last year revealed links between Inn Direct and other rogue recruitment firms that have operated in the trade.

Doug Tappin, employed by Inn Direct to introduce would-be licensees to new pubs, had previously worked for Greyfriars and was director of Tudor Inns.

Last April Greyfriars and Tudor Inns were both wound up by the Department for Trade & Industry for operating illegally. These two companies had links to notorious recruitment firm Barber Letting, which was put into administration in February.

The documentary, called Xposed and broadcast on ITV in the Yorkshire region, revealed that Tappin met potential licensees for both Greyfriars and Inn Direct at the same pub - the Board Inn, High Street, Knaresborough, North Yorkshire. The Board Inn was also Inn Direct's registered office and trading address between 1 May and 31 December 2005.

Inn Direct Limited was incorporated on 4 February 2004 and remained dormant until May 2005. Since 1 January 2006 its registered office and trading address has been the Peel Park Hotel, 239 Otley Road, Bradford, West Yorkshire.

The company went into compulsory liquidation on 26 July 2006.

Punch's early action against inn Direct companies

Punch Taverns acted quickly last year to remove Inn Direct and companies associated with it from its estate.

The company requested that its licensee at the Branston Arms no longer offer training to individuals sent there by Inn Direct. It also ended a number of tenancies-at-will operated by companies it believed were linked to Inn Direct.

Punch customer services director Francis Patton

said: "We are 99.9% sure that we've removed these sorts of companies from the estate. But you can never be 100% sure - they tend to re-appear under another name."