Last month Northern Focus ran a success story profile on North Shore Recruitment Company SOS Recruitment that soon had the phones ringing off the hook. The story led with the statement “...one of the leading recruitment companies in the country”. What the directors of SOS did not disclose to our reporter at the time was that the company had in fact gone in to liquidation earlier in the year.
As soon as this was brought to our attention we contacted Mr Whybro of SOS who told us he had not thought it was relevant to disclose the information because he did not realise what kind of story we were doing. He also mentioned he had not seen a proof of the story and that he would have corrected the opening statement. Mr Whybro also told us he had purchased the data base from the liquidator and was continuing to trade under the name of Lazarus Consulting.
It is a common misconception that newspapers are required to send a proof of any story or interview done for approval by the subject of that story. In the case of an advertorial – where the editorial has in fact been paid for and contact details have been included – a proof is always sent out. However when we interview somebody or are following a news lead we are under no legal obligation to send out a proof and do so at our discretion, although we do try to be as accommodating as possible.
Several readers have asked why we did not check with the Companies Office to see if the company was solvent as part of our research. With hindsight we certainly wish we had done so but the truth is there was nothing prompting us to do so. Mr Whybro was happy to be interviewed so we had no reason to suspect there was a problem with the company. If at any time he had said to us “perhaps not now” we would have looked for another company to profile. We have however now made it editorial policy to check every business we are speaking with – just to be sure.
Since speaking to Mr Whybro it has also come to our attention that a complaint has been laid with the liquidators and the Advertising Standards Authority regarding a compliance issue surrounding the use of the SOS Recruitment trading name. Under the Companies Act 1993 a successor company that uses the same or similar company name (including any trading name) to not be caught under the Phoenix Company provisions must apply to the court within five working days after commencement of the liquidation or alternatively issue a successor company notice within 20 working days after acquisition.
It is true some of the people who spoke to us were competitors of Mr Whybro – but just as many were not. All of them were surprised and angry – as are we at Northern Focus – that he had chosen to not be upfront with our reporter. It is not our job to judge a business, or any difficulty they may find themselves in; but nor are we a forum for self promotion with an avoidance of responsibility.
