Rogue emergency services publisher wound-up

, , Leave a comment

KMG Promotions Limited was wound up in the public interest in the High Court in Manchester before Deputy District Judge Watkin on 23 March 2020. The Official Receiver has been appointed as the Liquidator.

In considering the petition, the court heard that KMG Promotions Ltd was incorporated in November 2016 and traded as a publisher with registered offices in the Wirral.

Since the company began trading, KMG Promotions Ltd self-published two different publications: Crime Awareness magazine, and Scorch, a fire-prevention magazine.

As a source of income, KMG Promotions Ltd offered prospective clients advertising space, on the understanding that a copy of the magazine was going to be sent to a police and fire station, local to the client. Prospective clients would also receive their own copy of the magazine they advertised in.

Clients, however, began to complain about KMG Promotions’ activities before the Insolvency Service conducted confidential enquiries into the company’s activities.

Investigators uncovered that 771 customers had paid for adverts. But only 340 adverts appeared in the magazines that were available to the investigators and the number of magazines printed were short of the client’s expectations.

Further enquiries found that the company made misleading claims to potential advertisers, including the volume of printing and distribution, KMG Promotions Ltd’s charitable status or not-for-profit business, as well as previous business relationships with the advertisers.

The company falsely informed clients they were calling from the real emergency services and also pursued advertisers using aggressive sales tactics.

Scott Crighton, Chief Investigator for the Insolvency Service, said:

As part of our enquiries, we spoke to KMG Promotions’ customers and none of them were satisfied with the level of service they received.

The company acted in an unscrupulous manner and thankfully the courts recognised the severity of their actions when they ordered for the publisher to be wound-up.

All public enquiries concerning the affairs of the company should be directed to the Office of the Official Receiver in Birkenhead, quoting LQD5840591, via: Birkenhead.OR@insolvency.gov.uk.

Notes to editors

KMG Promotions Ltd (Company number: 10492837) was incorporated on 23 November 2016. The company’s registered office is at: 95 Greendale Road, Wirral, United Kingdom, CH62 4XE.

The petitions were presented under s124A of the Insolvency Act 1986 on 14 January 2020 at the High Court in Manchester.

Company Investigations, part of the Insolvency Service, uses powers under the Companies Act 1985 to conduct confidential fact-finding investigations into the activities of live limited companies in the UK on behalf of the Secretary of State for Business, Energy & Industrial Strategy (BEIS). Information about how to complain about a live company.

Information about the work of the Insolvency Service.

You can also follow the Insolvency Service on:

Revision History:

 

Leave a Reply