7/8/2009 12:00:00 PM
15-franchise cashback retailer DMC goes into liquidation
Discount Mobile Communications (DMC), a high volume cashback dealer with a reputed 15 franchises on its books, has gone bust.
The high street dealer and cashback specialist gave official public notice of its closure on 14 April, and will be dissolved on 14 July.
It comes two years after a spate of cashback collapses in the Midlands and West Yorkshire.
There are expected to be some casualties, but only a fraction of the amount left unpaid with the collapse of higher profile companies such as Dialamobile.
West Yorkshire trading standards’ divisional manager, David Lodge, said: ‘We have had a handful of complaints from people having difficulty getting their money back, and one person worried about the company closing.
‘But, in the context of other companies, there have been very few complaints as yet.’
DMC lists a number of ‘franchises’ on its website, but some denied they had ever entered into a franchise arrangement with the company, which claimed to supply contracts from the major networks. Other dealers claimed their relationship with DMC was closer to sub-dealing than a conventional franchise partnership.
One independent shop owner said: ‘We just used to sell contracts for them and get commission.’
He added: ‘They were doing cashback, but before they paid it they closed up and disappeared.’
One source with contacts close to DMC said: ‘They owe a lot of people money and were making minus figures. It was widely known that they were going under.’
The registered director and secretary of the company is named as Mr Imtiaz Bhaiyat at an address in Bradford.
Separately, Bhaiyat was previously charged for being in possession of counterfeit goods, following the discovery of fake designer clothes worth £800,000 while trading under the company ‘Scorpion Stylz Ltd’. He was charged with 24 counts of unlawfully using a trademark and 24 counts of possessing goods featuring an imitation trademark.