Courts shut down rogue education publisher
Manchester publisher of school booklets on knife crime and bullying wound-up by courts for inappropriate sales techniques which secured over £1.6 million.
The Prevention Foundation C.I.C., a community interest company, has been wound-up by the High Court, after complaints regarding misleading sales tactics.
Businesses were misled into paying for sponsorship of anti-knife crime, anti-bullying, and fire and road safety educational booklets sent to schools.
Prevention Foundation began trading in early 2019 after taking over the business previously operated by Safety Guide Ltd. Safety Guide was wound up in the public interest in June 2020 following an Insolvency Service investigation. Investigating complaints about Prevention Foundation, the Insolvency Service established that it operated substantially the same business as Safety Guide, targeting small businesses with unsolicited sales calls and using misleading sales tactics to obtain sponsorship.
Prevention Foundation’s directors failed to co-operate with the investigation and failed to provide any company accounts or records.
The investigation established that Prevention Foundation secured more than £1.6 million by February 2021, but due to the lack of co-operation it was impossible to account for over £1 million worth of expenditure.
As a result, Prevention Foundation was wound up in the public interest by the High Court in Manchester before District Judge Bever on 1 October 2021. The Official Receiver has been appointed as the Liquidator.
David Hope, Chief Investigator for the Insolvency Service, said:
This company abused its status as a community interest company. It used dubious sales tactics to elicit significant funds from small businesses without providing any recognisable community benefit. Prevention Foundation also demonstrated a wilful disregard for its obligations by obstructing our investigation.
Thankfully the court recognised the severity of the misconduct. Now it’s been wound-up, the Official Receiver can make further enquiries into Prevention Foundation’s practices and the conduct of its directors.
Notes to editors
All public enquiries concerning Prevention Foundation should be made to: The Official Receiver, Public Interest Unit, 16th Floor, 1 Westfield Avenue, Stratford, London, E20 1HZ. Telephone: 0300 678 0015 Email: piu.or@insolvency.gov.uk.
The Prevention Foundation C.I.C. (Company number: 11822611) was incorporated on 12 February 2019 as a private community interest company, limited by guarantee. The company’s registered office is at Hamill House, Chorley New Road, Bolton BL1 4DH.
The petition was presented under section 124A of the Insolvency Act 1986 and issued on 30 July 2021. The company was wound up in the public interest in the High Court in Manchester before District Judge Bever on 1 October 2021.
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