BOARDROOM bans totalling 23 years have been handed out to three directors of a Co Armagh jewellery firm which went bust owing nearly £1.8 million - and which at one stage was the single biggest cause of complaints to Trading Standards in Northern Ireland.
The Department for the Economy has accepted disqualification undertakings for seven years each from Nigel O’Hara (64) and Jill O’Hara (63), both of Ballyknock Road in Tandragee, and for nine years from Richard O’Hara (37) of Linvara, Tandragee.
The bans came in respect of their conduct as directors of JRN Retail Group Ltd, which sold watches and jewellery from a shop at William Street in Portadown, and also online.
The business went into administration in November 2015 and subsequently went into liquidation in May 2017 with an estimated total deficiency of £1,771,998.
A number of areas of unfit conduct were admitted by Nigel and Jill O'Hara, mainly in regard to failing to maintain adequate accounting records to allow administrators to disclose the financial position of the company in the last 12 months of trading.
In the case of Mrs O'Hara, she acted as a de facto director by holding herself out to creditors as JRN's financial director and exerting control over the daily business of the firm.
As well as admitting a failure to keen proper records, Richard O’Hara was also said to have acted in contravention of the trading regulations by taking monies from customers for goods which were not received, as well as misleading them on the price and availability of stock.
The O'Hara's jewellery store had been operating Portadown town centre for 42 years when it announced its closure in November 2015.
At the time, in a media interview, the directors blamed the closure on the negative influence of Rushmere shopping centre and traffic wardens in the town.
However, the following year Richard O'Hara was fined a total of £1,000 at Craigavon Magistrates Court when he pleaded guilty to 10 charges of unfair trading practices.
The court heard that JRN Retail Group operated an online business for several years before which advertised more than 91,000 different products for sale including plasma televisions, art prints, jewellery and shampoo.
In 2013, the Trading Standards Service noticed an increase in the number of complaints from consumers. Almost all complained that the business had taken payment but that no goods had been received and they were experiencing difficulty in getting their money refunded.
Many consumers reported feeling distressed as they believed they had been caught out by online scammers.
The Trading Standards Service sought to advise the business on how to amend its procedures to ensure consumer complaints were addressed, but the business failed to heed advice.
Complaints grew to such an extent that between July and September 2014, O’Hara became "the most complained about business" to the government body.
A subsequent investigation discovered the business had misled consumers about the price of goods, the ability of the business to supply the goods, sales promotions, discount offers and a 100 per cent cash back competition prize - where no winners were selected.
Furthermore, the unreasonable length of time the business held onto customers’ money when they were entitled to a refund, was found to be in contravention of "professional diligence".
