Colorvision brothers get pounds 5m six years on.Byline: Mark Hookham BACK in 1995, Colorvision was one of Liverpool's shining business success stories. In an increasingly competitive market place, the Speke-based company saw a five-fold increase in annual pre-tax profits, a remarkable jump from pounds 203,000 to pounds 1,057,000 in just one year. The company was regularly dealing with 4,000 customers a week at its 90 UK outlets and it employed 200 people in its nine Merseyside stores alone. The business was set up 38 years ago by two brothers from Wavertree, Neville and Bernard Michaelson. The business expanded from a second-hand washing machine shop in Paradise Street in 1964 to a Stock Exchange listed company in 1991. While famous competitors like Rumbelows retreated from the high street, Colorvision continued to concentrate on its core market of television, video, camcorders and satellite systems. The bubble A bit in bubble memory or a symbol in a bubble chart. burst on October 13, 1995, when Office of Fair Trading The Office of Fair Trading or OFT is a non-ministerial government department of the United Kingdom, established by the Fair Trading Act 1973, which enforces both consumer protection and competition law, acting as the UK's economic regulator. boss John Bridgeman John Bridgeman can refer to several people:
The OFT said there had been 12 trading standards convictions against the company since May 1989 and that it had ``engaged in business practices appearing to be deceitful or oppressive or otherwise unfair or improper''. An investigation was launched to see if Colorvision was fit to hold a consumer credit licence. On January 26, 1996, the OFT revoked Colorvision's licence and the once booming company began to feel the bite of amassive downturn in sales. The OFT said the company would only get its consumer credit licence back if the Michaelson brothers resigned from the board and reduced their combined shareholdings in the company to below 30pc. The company was also told it would have to forego its right to a judicial review. By April 1996 the company's sales of televisions and other electrical goods had fallen by one third and 34 staff at the Speke headquarters were made redundant. Neville and and Bernard Michaelson retired as directors and the company announced that it expected end of year losses of around pounds 4m. The new board could not save the company and in July 1996 receivers Arthur Anderson Arthur Anderson may refer to:
Assets were sold off and all 700 Colorvision staff lost their jobs. Neville and Bernard Michaelson were blacklisted from ever being involved in a business that held a consumer credit licence. ``This is why we have had to fight to clear our names and reputations,'' said Neville last night. Six years on the Parliamentary Ombudsman The Parliamentary Ombudsman (Finnish: Eduskunnan oikeusasiamies, Swedish: Riksdagens ombudsman) is an authority in Finland and Sweden, charged with the supervision of the public authorities. made findings of maladministration against the Office of Fair Trading with injustice Injustice American concentration camps 110,000 Japanese-Americans incarcerated during WWII. [Am. Hist.: Van Doren, 487] Bassianus murdered after being falsely accused. [Br. Lit. to the Michaelson brothers. The pair were awarded just under pounds 5m but Neville Michaelson said: ``Our reputations are cleared but Colorvision is dead.'' Daily Post, Saturday, May 25, 2002 CAPTION(S): CLEARED: Neville Michaelson |
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