Other Cityphone Group companies such as Talk4All and Phone City Franchises will remain unaffected by Pointgolds fall providing that they can remain T-Mobile stockists.

Pointgold will be wound up. I have not offered to buy it from the receiver nor has the receiver had any bids for the business. It is not worth a penny. We have lost as much money as T-Mobile Cityphone boss Barry Donaghey told Mobile News.

We are working with T-Mobile to try to stop the other businesses from going under. The other companies look very secure. They are owed commissions by Pointgold.

We want to carry on connecting through T-Mobile. The other companies within the Cityphone group remain profitable and should escape any collapse. Other parts of the group are entitled to become T-Mobile stockists. They were stockists to Pointgold the distributor and have their own management teams and are entitled to get stocks from other T-Mobile distributors. It has been a very bad time for us.

Donaghey agreed Cityphones ambitious plans to have a nationwide chain of 100 shops had overstretched Pointgolds resources.

Ironically Pointgold purchased 30 WAP stores in January for 700000 from the same insolvency specialists RSM Robson Rhodes which is now administering Pointgold.

(see analysis P16)

Howard Philips of accountancy firm Sorskys has been appointed as the administrative receiver.

Agcomm director George Savva says the liquidator is likely to pursue the unnamed mobile phone trader who was paid 419000 for a consignment of mobile phones but disappeared without delivering the handsets.

The matter is now in the hands of the liquidators. We tried to pursue the debt without success he said.

Philips was unavailable at the time of going to press to confirm the identity of the rogue UK trader or whether legal action had been taken against it.

Agcomm also got stung by a 1.6 million consignment of Prada clothing that it has been unable to sell for legal reasons.

We bought the Prada stock from an Italian trading company which supplied us with documents stating that we could sell the stock in any country except Italy said Savva. But the documents were forged and Prada served an injunction against us preventing us from selling the stock in all but a few countries.

Unsurprisingly this caused cashflow problems.

We have been unable to sell the stock even at very low prices he added. We are only allowed to sell the stock in the Middle East and Far East but not Japan. We initiated criminal proceedings against the Italian trading company before we went into administration.

A creditors meeting will be held this Friday (November 1) at Agcomms accountants offices in Regents Park London.

A letter sent on October 11 to creditors by administrative receiver RSM Robson Rhodes estimated the companys trading losses from April this year at 3.8 million most of which is owed to T-Mobile.

Other major creditors include Barclays Bank which is owed 309000. Robson Rhodes also expects a 263000 VAT claim from Customs and Excise and a 62000 claim from the Inland Revenue (Cont P2) for National Insurance contributions and PAYE.

Current indications are that there will not be a distribution to preferential creditors or unsecured creditors said Robson Rhodes.

A creditors meeting will take place on December 17 to officially explain the reasons behind Pointgolds demise.

Pointgolds directors have blamed the companys fall on the expansion of its retail chain including the 700000 purchase of the Wap Store group as well as reduced sales and lower margins.

Robson Rhodes confirms network operators held back commission payments to Pointgold in September after Pointgold started to run up debts.

The letter to creditors said: As a consequence of increasing indebtedness to the mobile phone operators they reduced commission payments which put further pressure on cash-flow. The company became unable to supply the retail outlets as it was outside terms of its suppliers. Commission payments at the beginning of September were withheld.

Robson Rhodes shut Pointgold when it became clear that T-Mobile was about to terminate Pointgolds distribution agreement. Pointgold traded profitably in 2000 and 2001 reporting profits of 303000 and 833000 respectively.

He claims he was wrongfully arrested at TAPs premises on August 20 as he arrived to attend an Extraordinary General Meeting of the company.

Ali Khan had been released on police bail following allegations that he had made threats against TAP chief executive Nasa Khan shortly after resigning as a TAP director (Mobile News August 5).

However Kingston Police last week cancelled Ali Khans bail and dropped the case due to insufficient evidence to substantiate the alleged threats against Nasa Khan.

Ali Khan told Mobile News he now intends to pursue TAP directors and the police for wrongful arrest and believes the arrest was a ploy by TAP directors to stop him (Cont P2) revealing to other TAP shareholders and directors why he thinks TAP has breached his shareholder agreement.

The investigation against me has been dropped. My solicitors are looking at comments made by TAP MD Bav Majithia to Mobile News with regard to my arrest and various other matters with intention to take further proceedings against TAP and various officers of the company. We are also in very strong conversations with the police in regards to my wrongful arrest.

He went on: I am left with an impression there was an attempt to ensure I did not present certain issues to the board and to shareholders. This is why I am about to request a further EGM so that I can voice my concerns in front of all the shareholders and directors.

Ali Khan who has been in a legal battle to sever all ties with TAP following his resignation as a director in July claims to have successfully served a statutory demand for payment but stresses that there is still some way to go before he recovers all the money he is owed under his shareholder agreement.

I can confirm TAP was served with a statutory demand for payment. TAP has made the relevant payment but there is still a long way to go before all ties with the company are severed. TAP has other agreements to honour.

At the time of going to press TAP declined to comment.

Blue-I paid a high price for licences to produce fascias featuring cartoon characters from Warner Brothers and the Coca-Cola logo.

Blue-I was formed by Jay and Vimal Pau and used to be known as Fone Range Partnerships (not to be confused with the Fonerange brand now owned by Elite Mobile).

Blue-I commercial director Oliver Brooks declined to comment on the reasons for Blue-Is failure.

Blue-Is collapse will affect people who are owed money by the Pau brothers old company Paragon the former holding company of Blue-I which is also now defunct. (Cont P2) They are unlikely to receive any dividend.

When Paragon went bust in April 2001 its creditors approved an offer made by liquidator Levy Gee which reckoned that they might receive 9p in the pound. This offer was conditional on Blue-I paying Levy Gee 400000 for stock and equipment and the release of Blue-I shares.

Paragons liquidator Simon Glyn confirmed that Blue-Is failure meant Paragon creditors would be left out of pocket. Blue-I still owed Levy Gee 290000 which the liquidator will now not receive.

Glyn told Mobile News: The offer of 9p in the pound was just an estimate. We have not yet agreed all the creditors claims.

An ex-Blue-I employee said the commitment to repay 400000 to Paragon caused Blue-I to suffer cashflow problems.

He confided: In hindsight the goodwill payment was paid at an over-inflated price. It was a burden that Blue-I struggled with as market conditions worsened and sales dropped.

There were other factors too. The value of some (fascia) licences dropped because of cross-border trading counterfeiting and grey imports he said. The two licences most affected were Warner Brothers and Coca-Cola which Blue-I paid highly for. Strong police action was needed to stop this but we did not see it. Warner Brothers tried to deal with these problems but it is a long and difficult process.

Industry sources say he has been in talks with Virgin Retail to acquire some V.Shops.

He is believed to have approached Virgin Retail some weeks ago with a view to purchasing some of their companys stores. The move apparently coincided with Virgins decision to review its V.Shops which resulted in the sale of 40 stores to Sanity Records two weeks ago.

Sanity purchased 100 Our Price stores just under a year ago.

Insiders claim Emanuel is still in talks with Virgin to acquire some of the remaining 60 V.Shops in order to expand his new mobile phone retail chain Tomo which launched earlier this year with a solitary store in Nottingham.

Virgin Retail is still considering a number of options for the (Cont P2) remaining V. Shops including turning some into mini-Virgin Megastores branded Virgin Megastore Express.

In the meantime Virgin Mobile says the sale of V.Shops does not reduce Virgin Mobiles presence on the high street. Virgin Mobile corporate affairs director Steven Day told Mobile News:

Virgin Mobile is sold exclusively as the only mobile phone products in V.Shops. We will continue to supply products to Sanity Records and be the sole mobile phone products in the stores under new ownership.

The clawback came after Convergent experienced a high volume of disconnections from an unnamed dealer. The dealer has since stopped trading. (Cont P2)

Convergent Telecoms parent company Convergent Communications issued a trading statement stating that the 1 million loss would mean interim results would be below market expectations. Industry insiders say Walsh had to go because he had overall responsibility for connections made through the company.

Convergent chief executive Tony Farmer said the loss would not affect the companys ability to continue trading.

We have suffered a bad debt from a distribution relationship. The loss is irrecoverable and we have written it off on our interim results. The whole of the business remains unaffected. In fact our service provision business is growing well. There will be no further impact on the business following this loss.

However Rocom has vowed to challenge Oranges right to issue clawback claims. If Rocom wins its appeal there could be wide-reaching implications for Oranges other distributors and direct dealers.

Rocom had been defending a 1 million clawback claim by Orange claiming Orange employees had authorised irregular connections made through two of its former dealers. Rocom chairman Bob Old lodged a counter-claim alleging that Orange employees were to blame for the situation. But that claim was dismissed by the judge at the hearing on October 22.

Orange issued a statement saying:

The judge rejected most of Rocoms defences and counter-claims. The only outstanding issue in the litigation is the exact amount which is due from Rocom to Orange in respect of clawback commission. This amount will be determined at a future hearing

But Rocoms chairman Bob Old insisted that Orange had won nothing and that he would battle on to challenge Oranges right to (Cont P2) clawback commission. Old told Mobile News.

Orange has made an announcement that it has won its long-running dispute with Rocom by obtaining judgment against Rocom.

Oranges premature and simple statement is misleading. It does not make it clear that when the court order is executed a judgment against Rocom will be offset by credit due to Rocom of a greater amount such that Rocom would be net in credit.

Rocom has been given leave to defend Oranges claim to clawback commissions and to call into question historical clawback of commissions by Orange. Rocom is now preparing a substantial defence and counter-claim.

The net result of which may be that Orange owes Rocom a sum of money because either Orange is wrongly claiming commission clawbacks or has already wrongly clawed back commissions.

The row is over a website from a company called phones4you.co.uk set up by a Carphone Warehouse affiliate which directs surfers to The Carphone Warehouses home page.

I am amazed The Carphone Warehouse is being so blase about the whole affair said Phones4U managing director Anthony Catterson. They might see it as just one of those things and something that happens all the time but we see it as a very serious matter.

We believe Phones4U customers are being deliberately misled because The Carphone Warehouse is passing itself off as Phones4U.

The practice is the same as if The Carphone Warehouse built a store with a Phones4you sign outside and then a Carphone Warehouse interior.

Catterson wants the website closed down a formal apology from The Carphone Warehouse and financial compensation from the retailer for any sales that it might have made from the website.

They say it isnt illegal but I have a lawyer who thinks differently. It is the clear misleading of customers by using a derivative of our name continued Catterson.

It is an incongruous standpoint for a company that normally takes the moral high ground and presents itself to customers in this light.

That is why I have no problem going public with this . (Cont P2)

The dispute arose when Phones4U found that internet users who misspelt its web address and typed phones4you.co.uk were directed to The Carphone Warehouse homepage.

Catterson said the company was consulting its lawyers and suggested that The Carphone Warehouse was breaching its trademark.

But The Carphone Warehouse has denied any wrongdoing and suggest it is a perfectly acceptable and common practice.

It really isnt a big deal said a Carphone Warehouse spokeswoman.

In the first place it isnt something we have done we only found out about it last week.

The name was secured by a third-party affiliate that works for us. Secondly we have no problem with this sort of thing. It isnt illegal and we suffer from the same problem ourselves.

According to The Carphone Warehouse the controversial website was secured by one of the companys online affiliates whose actions are monitored by a company called Trade Doubler.

If The Carphone Warehouse secures a sale over the internet as a result of the redirection the affiliates are paid commission.

The Carphone Warehouse spokeswoman also claimed (at the time of going to press) that if users type in fonesforyou.co.uk they would be redirected to a dial-a-phone website while if users searched for carphonewarehouse.co.uk they are also directed to another dial-a-phone website.

We really cannot see what the problem is and we will be taking no action to stop Trade Doubler or any other affiliate she told Mobile News.

SonyEricsson UK marketing chief Peter Marsden explained both Sony and Ericsson used to outsource dealer support to field marketing agencies.

Sony used Mosaic Technology for training merchandising and in-store promotional support. Ericsson had a similar relationship with The Blue Water Agency.

After a review we discovered the service we were providing to the independent channel was not as good as we wanted it to be. Neither Mosaic or Blue Water will be working for us. Neither will the staff they employ. Thats probably where the rumour started that SonyEricsson is pulling away from the independent channel.

Blue Water people have been regarded by dealers as Ericsson employees.

There was no need for them to know that their Ericsson rep worked for a third-party field marketing agency. That was the way Ericsson wanted it to be done.