Directors of collapsed adventure firm set up new companies using similar name
19 February 2013 10:05
The directors of a motorcycle adventure firm which folded after keeping £120,000 of charity donations have each registered a new company with a similar name.
Global Enduro went into administration after failing to pass on customers' donations to charity dating back to 2011.
The donations were taken by the firm on the understanding they would be distributed between four charities including Sentebale, founded by Prince Harry to support orphans in Lesotho.
The firm's directors, Simon Smith and Nick Capsey, respectively registered Global Enduro International and Global Enduro America with Companies House in July and August of 2012, when the existing business had already failed to pass on donations.
Participants in rallies each October called Enduro Africa were required by Smith and Capsey to raise £1500 over and above the cost of the trip for a 'guaranteed donation' to the charities, which also include Unicef.
A letter from the charities to Global Enduro reveals that £84,000 from 2011 and £38,000 from 2021 was not passed on.
According to Capsey the debt stood at £119,000 when Global Enduro went into administration last month.
Smith is listed as director of the new firm Global Enduro International and Capsey is company secretary of Global Enduro America. Both firms have only one appointment listed with Companies House. Capsey said the companies were registered to sell tours to customers from the US and Europe. He said the decision to create new companies for this, rather than expand the existing firm, was based on financial advice.
He said: "The advice from the financial director was to keep it separate. If you were going to take in funds from overseas then take them in as separate funds."
He said he did not know the reasons for the advice and there were no plans for the companies.
He added: "All that's been done with those two companies is they were set up at Companies House. Within weeks of that happening we decided not to concentrate on going into new markets... Nothing has been done with those companies and nothing will be done."
Simon Smith did not respond to MCN's enquiry.
Sentebale, which is owed £41,000, did not comment.
Princes William and Harry took part in Enduro Africa in 2008.
The trip was on of several organised by Global Enduro each year. Other destinations included Asia and South America.