Internet business selling £30,000 franchises is wound-up

An internet business which sold internet advertising franchises for more than £30,000 each has been wound-up by the High Court. The company had been abandoned by its officers.

The Internet Business Pages Ltd created a business directory and sold seven franchises which conferred on the purchaser the right to sell advertising space on the directory.

The Insolvency Service's Companies Investigation Branch (CIB) investigated the company, which had not filed accounts or annual returns at Companies House.

The CIB found that IBP's activities had earned it £238,000 from seven franchisees between August 2003 and May 2005. IBP abandoned its trading premises but even after that made £43,993 in standing orders. After the office abandonment £18,500 was withdrawn from cash machines from the company bank account.

The company had filed an Application for Striking Off which The Insolvency Service found contained false or misleading information, and it lodged a petition to wind up the company in the public interest late last year.