Hamilton Forbes and Price Chamberlain, which traded in Lancashire and were originally set up to continue the business of Barrington House Publishing Corporation which was wound up in 2005, sold advertising space on wall planners to small businesses.

Companies placing advertisements with the publishers were misled as to the amount of their fee going to charity. Initially, the companies failed to comply with Section 60 of the Charities Act 1992 and did not inform advertisers of the proportion of their fees which would be given to charity. Though they latterly sent out such statements, these were inaccurate.

Advertisers were told that from Hamilton Forbes, 15p in every pound would be given to the Children’s Research Fund and 10p in the pound to the International League for the Protection of Horses. In reality, less than 5p in the pound went to these charities.

Advertisers with Price Chamberlain were advised that 25p in every pound would be donated to Kids in Need and Distress (KIND), but in reality the sum was only 8p in the pound.

A statement from the Insolvency Service said the companies’ accounting records were “at best inaccurate and at worst misleading”. Both companies also appeared to be insolvent, owing VAT and PAYE of more than £250,000.