Destiny Enterprises, a company which sold plumbing franchises nationwide under the Skillfix name, was forced into compulsory liquidation in the High Court last week.
The decision to wind the company up was said to be in the public interest following an investigation by the Companies Investigation Branch of the Insolvency Service.
The investigation discovered that the franchise marketed to unsuspecting investors was “inherently flawed and objectionable”.
Franchisees were also misled by false and misleading statements about the historical success of the franchise and its potential earnings.
According to research conducted by the CIB, franchisees turnover fell short of projections by between 55 and 86 per cent.
In ordering the company into compulsory liquidation, Mr Registrar Simmonds said: “It appears, despite protestations from the director, Timothy James Old, that serious misrepresentations were made to people to get them to enter into franchise agreements, particularly in relation to the projections and the solvency of the business.
“There are also a number of other less serious matters in the evidence. I am therefore satisfied there is a prima facie case for the winding up of Destiny in the public interest.'