Press release

Yorkshire furniture retailer director trio banned for a total of 29 years

Wajid Hussain has become the third of three directors of companies involved in the selling of furniture under the banner 'iSleep', to be disqualified from being a director.

placeholder

The bans follow an investigation by the Insolvency Service.

On 24 October 2016 the Court at Manchester District Registry made an 11 year disqualification order against Wajid Hussain (44), the director of I Sleep Ltd. The court order follows nine year director disqualification undertakings agreed in 2015 by Shazam Hussain (37), the director of I Sleep Ltd and Foxton Furniture Group Limited and Yaser Ali (34), the director of Goole Furnishings Limited.

The disqualifications were by the Official Receiver’s Public Interest Unit, part of the Insolvency Service.

The effect of the order and undertakings is that Wajid Hussain, Shazam Hussain and Yaser Ali cannot, except with permission of the Court, be directors of a company or take part in the promotion, formation or management of a company.

I Sleep Ltd, Foxton Furniture Group Limited and Goole Furnishings Limited were wound up by the Court in the public interest on 8 January 2014 following the presentation of petitions by the Secretary of State for Business.

Wajid Hussain was banned for 11 years. The Court found that he failed to maintain, preserve and/or supply adequate accounting records for I Sleep Ltd, as a consequence of which it has not been possible to:

  • identify the extent of its trading or its relationship with other companies within the iSleep Group, which has prevented me from identifying which company customer claims should be attributed to
  • determine total sales receipts for I Sleep or otherwise account for these funds. In particular, I have been unable to account for payments made to I Sleep’s bank account from 1 January 2012 up to his resignation as sole director on 15 March 2013 totalling at least £651,118
  • account for subsequent expenditure of funds, in particular purchases after 24 December 2012 for which no records have been provided
  • determine if rental and other associated costs of £621,216 charged in 2012 and payable to an associated company were undertaken in the ordinary course and best interest of the company

Between 8 April 2010 and 8 January 2014 he failed to ensure that I Sleep adequately separated its trading and financial affairs from the Group of companies trading as iSleep and as a consequence has caused or allowed I Sleep to be involved in the sale of unsafe furniture to the public and in breaching consumer rights in that, sales of unsafe furniture were made to customers, customer complaints were not dealt with. Furthermore, customers prepaid-for goods which were not delivered at all, delivered in part, not the items ordered and paid for; and were faulty on delivery or failed shortly thereafter with customers being unable to obtain replacements or refunds.

Shazam Hussain was banned for 9 years. Shazam Hussain did not dispute that he failed to maintain, preserve and or supply adequate accounting records for I Sleep Ltd (I Sleep) and Foxton Furniture Group Limited (Foxton). As a consequence of which it has not been possible to:

  • identify the extent of its trading or its relationship with other companies within the I Sleep Group. Which has prevented the Official Receiver from identifying which company customer claims should be attributed to
  • determine total sales receipts for each of the companies or otherwise account for these funds. In particular the Official Receiver has been unable to account for payments made to I Sleep’s bank account following his appointment as sole director of 15 March 2013, which has remained under the control of a third party, totaling at least £76,261
  • unable to account for subsequent expenditure of funds. In particular purchases after 24 December 2012 for which no records have been provided

Between 19 May 2011 and 8 January 2014 he failed to ensure that I Sleep and Foxton adequately separated the trading and financial affairs of both companies and the Group of companies trading as iSleep and as a consequence has caused or allowed I Sleep and Foxton to be involved in the sale of unsafe furniture to the public and in breaching consumer rights, in that sales of unsafe furniture were made to customers, customer complaints were not dealt with. Furthermore, customers prepaid-for goods which were not delivered at all, delivered in part, not the items ordered and paid for; and were faulty on delivery or failed shortly thereafter with customers being unable to obtain replacements or refunds.

Yaser Ali was banned for 9 years. He did not dispute that he failed to maintain, preserve and or supply adequate accounting records for Goole Furnishings Limited (Goole). As a consequence of which it has not been possible to identify the extent of its trading or its relationship with other companies within the I Sleep Group. This has prevented the Official Receiver from identifying which company customer claims should be attributed to, determine total sales receipts for Goole or otherwise account for these funds or account for subsequent expenditure of funds.

Between 19 July 2011 and 8 January 2014 he failed to ensure that Goole adequately separated the trading and financial affairs of Goole and the Group of companies trading as iSleep and as a consequence has caused or allowed Goole to be involved in the sale of unsafe furniture to the public and in breaching consumer rights, in that sales of unsafe furniture were made to customers, customer complaints were not dealt with. Furthermore, customers prepaid-for goods which were not delivered at all, delivered in part, not the items ordered and paid for; and were faulty on delivery or failed shortly thereafter with customers being unable to obtain replacements or refunds.

Commenting on the disqualifications, Official Receiver Ken Beasley said:

These companies traded with no due regard to their customers, leaving many significantly out of pocket and causing distress and anxiety. In addition, by selling unsafe furniture even after being notified that it was unsafe the directors of these companies showed no regard for the safety of their customers.

The Insolvency Service has strong enforcement powers and we will not hesitate to use them to remove dishonest or reckless directors from the business environment as has been demonstrated in this case.

Notes to editors

I Sleep Ltd (CRO No. 07217634) was incorporated as a private company on 8 April 2010. The registered offices of the company have been Unit 1-4 Queens Mill, Mill Street East, Savile Town, Dewsbury, West Yorkshire WF12 9AQ (between 8/4/10 and 15/9/11); 22 Corporation Street, Dewsbury, WF13 1QG (between 15/9/11 and 21/8/13); and 164 Dewsbury Road, Wakefield, West Yorkshire, WF2 9BE (since 21/8/13). The company is known to have traded from premises at 22 Corporation Street, Dewsbury, WF13 1QG; and 32 New Street, Huddersfield, HD1 2BU.

Foxton Furniture Group Limited (CRO No. 07210744 ) was incorporated as a private company on 31 March 2010. The registered offices of the company have been Unit 1 Queens Mill, Mill Street East, Savile Town, Dewsbury WF12 9AQ (between 31/3/10 and 25/1/11) and 22 Kirkgate, Wakefield, WF1 1SP (since 25/1/11). The company is known to have traded from premises at 15/17 Crown Street, Halifax, HX1 1TT; 28/30 Darley Street, Bradford, BD1 3HH; and 22/23 Baxtergate, Doncaster, DN1 1LD. It may also have traded from 9 Market Place, Retford, DN22 6DR.

Goole Furnishings Limited (CRO No. 07722777) was incorporated as a private company on 29 July 2011. The registered offices of the company have been: 3-4 Wesley Square, Goole, Humberside, DN14 5EL (between 29/7/11 and 6/9/13 and since 12/9/13); and c/o 54 Hjigh Street, Normanton, WF6 2AP (between 6-12/9/13). The company is known to have traded from premises at 22 Kirkgate, Wakefield, WF1 1SP; 31/33 Micklegate, Selby, YO8 4EA; and 40 Carlton Street, Castleford, WF10 1BA.

Published 1 December 2016