TWO company directors face bans of at least five years after a court heard how a business ended up more than £800,000 in the red after just ten months of trading.

Blackburn County Court was told that Retek Electrical Products had been one of a number of firms set up around an electric radiator product over the last eight years - and one of three which ended up owing more than £1,880,000.

The Official Receiver had applied to have Warren Lee Marsden and Peter Jackson disqualified from being company directors over their conduct in the running of Retek Electrical Products.

Matters found included carrying on the business when there was no reasonable prospect of creditors being paid and failing to keep proper paperwork and records.

After hearing the evidence District Judge Geddes adjourned the case but indicated he was considering bans of at least five years.

Marsden, 30, of George Street, Great Harwood, and Peter Jackson, 51, of Portfield Lane, Whalley, did not attend.

The court heard that Retek Electrical Products Ltd was set up in March, 1994, and began trading from premises in York Street, Rishton, in June that year. It had been launched to develop and manufacture a slimline radiator designed by Barry James Marsden, Warren's father. The court heard that there had been at least seven companies connected with the product since 1989 and that both men had been involved with a number of them.

The court was told that Jackson had been involved with a total of three companies which had gone into compulsory liquidation.

Jackson was responsible for running Retek Electrical Products on a day to day basis with Marsden involved in the sales side of the company.

Staff were recruited during the summer of 1994 and in August manufacturing began. It ceased trading just six months later and the staff were dismissed.

The court heard a business plan had been drawn up giving projections for sales of radiators but by February, 1995, there was more than a £1 million shortfall in sales.

"It should have been obvious that there was a problem building up. Neither of these directors were new boys as company directors, all the more reason for them to be aware of the situation," said District Judge Geddes.

In March 1995 the firm was wound up owing £440,000 to creditors. In the end the total deficiency was £805,000.

In an affidavit presented to the court Jackson said that he had lost a substantial sum of money through the collapse of Retek Electrical Products because of debts he had personally guaranteed.

He also pointed out that at the time he hadn't been fully aware of the history of the product when he got involved.

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