Smartbox collapse leaves licensees locked in
Hundreds of licensees have been left tied to hire purchase deals on equipment they cannot use following the collapse of controversial interactive TV service Smartbox.
The company ceased trading on November 23 but publicans are still legally bound to continue paying for the equipment, including screens, modems and projectors.
One licensee facing a massive bill, Terry McCartney of the Lime Tree in Paignton, Devon, said he is owed more than £1,500 by Smartbox. He says he is prepared to go to court after being threatened with legal action by finance company Lombard for cancelling his direct debit with them three months ago.
He said: ³Lombard have told me that if I don¹t pay them they will seize the equipment and sell it to off-set the amount I owe them, and then charge me the amount for the rest of my contract. In total they want £5,947.77.
"It¹s Smartbox that broke the agreement. They are the people Lombard should be going after, not publicans." Complaints were flooding in to thepublican.com before the collapse, with many licensees claiming they were not being paid and were receiving poor customer service.
Smartbox had admitted experiencing "growing pains" but had assured licensees it would resolve the issues.
As part of the rental deal, publicans were supposed to receive a share of the advertising revenue from the system. They also signed finance deals to hire TV equipment through independent suppliers.
Another licensee tied to a finance deal is Michael Houlihan of the New Inn in Hasland, Chesterfield. His deal with Classic Leasing, which still has almost two years to run, is for £178.07 a month. He said: "I¹m hoping there¹s some sort of a loophole. It looks like I¹m going to have to pay it. Someone out there might find a way around paying the lease. I¹m not happy at all."
Both Lombard and Classic Leasing were unavailable for comment. Licensees have signed the hire agreements and the companies are within their legal rights to pursue them for payment.
Victims of Smartbox have been promised a letter from the liquidator following a creditors meeting on December 11. Licensees can contact Butcher Woods on 0121 236 6001.
What now for the victims?
Licensees affected by the collapse of Smartbox will be digging out contracts and lease agreements from the filing cabinet to see where they stand and how much money they are owed.
Many Smartbox customers who have not been paid by the company will quickly be able to calculate the amount owed by the now-defunct pub entertainment supplier, however unlikely it is that they will get their money back.
But confusion remains over the separate lease agreements licensees signed along with their Smartbox contracts, which are still binding. Smartbox used a number of different finance companies to run credit checks on licensees and provide them with finance to hire the equipment. These include Classic Leasing, Lombard, Weatherby¹s and Haydock Finance. Most licensees signed a repayment deal over three years, after which they would own the equipment outright.
This would appear to still be the case, as long as licensees keep up with the repayments. However, following the collapse of Smartbox, much of the equipment is useless.
Pub may still make use of plasma screens and projectors. Modems, computer bases and number pads, however, are redundant.
For their part, some of the finance companies involved have offered a preferential settlement figure and will discount any future interest. There is no obligation for them to do so however, and licensees will face a fight to negotiate an individual deal.
