Shame of Coldseal 'serial' collapses - Liverpool Echo

Written Nov 29 2004

THE ECHO today reveals the misery left behind by the scandalous multiple collapse of the Coldseal windows empire.

Merseyside customers have been left out in the cold after the fourth collapse of the Essex-based double glazing firm.

ECHO Action has been inundated with calls from customers desperate to know what they can do.

Coldseal has left behind an impenetrable maze of bankrupt companies and countless customers who have lost many thousands of pounds.

Today we can reveal the Official Receiver has launched an investigation into the working practices of the empire.

A liquidator for one of the 11 companies linked to Coldseal, all of which have collapsed this year, said: "There is nothing left, no assets, no guarantees for the customers."

Coldseal has been accused of phoenixing, a scam where companies go into liquidation only to re-appear after being bought out by people who were involved in the original business.

Now Merseyside MPs have called for new legislation to outlaw this abuse, which leaves ordinary people out of pocket but the bosses free of their debts.

It is the fourth time the company, or versions of it, has collapsed and each time they have dumped their debts and their responsibilities to customers. They then re-emerge with another Coldseal title.

Coldseal's boss is an elusive character called Karl Williams, although he appears on little of the paperwork connected with the web of different companies. He was the subject of a BBC Watchdog investigation only last week.

He is a listed director of the Carthium group, the last known parent company of Coldseal, and a former director of one of the failed group of companies.

It is not only his customers feeling the effects. The conference league football club Hornchurch, in Essex, which Williams once sponsored, is now fighting for its survival after their cash dried up.

Most of the customers across Merseyside bought their replacement windows from Coldseal centres in Chester and Manchester.

Hundreds have now been left with faulty windows and doors and are now facing having to shell out thousands pounds for new windows.

Those who paid out extra for 10-year or lifetime guarantees have found that they are worthless too.

Liverpool Riverside MP Louise Ellman called on the government to take action to prevent more people suffering at the hands of Coldseal.

She said: "This must be brought to the attention of the Department of Trade and Industry so that a full investigation can be held."

Birkenhead MP Frank Field added: "This practice of phoenixing should be investigated.

"It seems bizarre that genuine small businesses owners who struggle and are forced into bankruptcy are tarred with that brush for many years afterwards.

"Yet there are those who hide behind their company, fail to meet their responsibilities and then move on with another firm."

George Howarth, MP for Knowsley North and Sefton East, said: "From the information the ECHO has put together, it seems to me that the people willing to carry out this deceit should not be allowed to stay in business."

None of the Coldseal centres is now working and there is no management structure to answer questions.

The only contact with Karl Williams is through his solicitors, and they have failed to respond to repeated requests from the ECHO for a statement.

Source Liverpool Echo