Ban for boss of failed furniture business Brian James
A furniture store boss whose bust company left customers £100,000 out of pocket has been banned from running businesses for five years.
Stephen Dodd, boss at Cannock furniture retailer Brian James Holdings Ltd, paid himself more than £30,000 from its dwindling account.
The firm's director made the payment to himself in the six weeks before the firm collapsed into receivership in March 2011.
He also paid £16,380 for vehicle hire charges and £6,898 to one of his friend's companies prior to attempting to pay back debts to customers and creditors.
The company was left with losses of more than £2.6 million, owing £1.4m to its bankers, £444,000 to trade suppliers and £99,000 in customer deposits for furniture that was never received.
Investigators today said Dodd had put his own interests first and damaged confidence in business while his actions had been "corrosive" to the local economy.
Mr Dodd, aged 66, of Lichfield, has now been banned from becoming a director or manager of limited companies until April 2018. The order was made by Secretary of State for Business, Innovation and Skills Vince Cable.
Brian James Holdings Limited, based in Walsall Road, was founded in 1975 and traded from premises in Bridgtown where it employed 19 staff for 35 years.
The company began to have cashflow difficulties in 2009 and by February 2011 was unable to pay all its debts. An investigation by the Insolvency Service exposed Dodd's payments, which should not have been made until debts had been repaid.
Robert Clarke, head of company investigations in Birmingham at the Insolvency Service said: "Directors who put their own personal financial interests above those of customers and creditors damage confidence in doing business and are corrosive to the health of the local economy.
"This ban should serve as a warning to other directors tempted to help themselves first – you have a duty to your creditors and if you neglect this duty you could be investigated by the Insolvency Service and removed from the business environment."
After the firm's collapse, the company premises were bought by Smethwick-based furniture firm NCF, which relaunched as Brian James Furnishings in October 2011.
It has had a £1m refurbishment and 20 jobs were created. Ten of the workers who lost their jobs when it shut were reinstated.
No one at the company wished to comment on Mr Dodd's directorship ban.
Mr Dodd could not be contacted.
