Deals website nCrowd goes bust owing shoppers money - but then reappears under new ownership: How to stay safe when shopping online
Before Christmas, The Mail on Sunday reported that UK discount deals website nCrowd, also trading as BoomStreet, was on the cusp of going bust.
Since then the business has gone into liquidation but the brand has reappeared online.
Another company, called Mighty Deals Ltd, has purchased the name and database used by the former business and continues to operate a discount deals website under the name nCrowd.
There is no suggestion that Mighty Deals Ltd had any connection with the former nCrowd business.
Here, Laura Shannon explains how this can happen – and warns of the hidden dangers of internet shopping.
Iconic: nCrowd was operated from the Sunsphere building in Knoxville, Tennessee
Thousands of shoppers and small businesses who lost money when the UK arm of online deals website nCrowd went into liquidation have been warned they will not be getting a refund.
More than 2,800 people and businesses are estimated to be owed around £1.6million following the collapse of nCrowd. The company also traded as BoomStreet, which is still up and running in the US but under a different company name.
The man behind the online enterprise was US citizen Brian Conley. The 51-year-old serial businessman, who operated nCrowd from an iconic building called Sunsphere in Knoxville, Tennessee, is also facing legal action by small business owners who claim to have lost money in the US.
In the sun: Brian Conley, ex-owner of nCrowd, with wife Christa
Only recently Conley was pictured smiling and sipping drinks with his wife in sunny Cabo San Lucas, in Mexico, while his customers counted their losses – some of which run into thousands of pounds – at home and across the pond.
In the UK, owners of small companies including pubs, hotels, restaurants and beauty salons were approached by nCrowd to offer discounts to customers in a supposed win-win move designed to help the website, small businesses and customers alike.
Merchants honouring these deals say they started to lose out when nCrowd failed to reimburse money paid by customers.
Many shoppers buying discount goods never received their items. The company ceased trading late last year and officially folded in mid-December.
Shortly afterwards a letter from the liquidator responsible for winding up nCrowd sent to creditors warned that 'no refunds will be issued by the company and nor will any orders made now be fulfilled'.
A statement from Conley shows money was funnelled from the UK website to help keep the US version afloat.
In legal documents filed in the US defending Conley's handling of the business, it says: 'Mr Conley at all times acted in good faith and in the best interest of nCrowd when making business decisions affecting creditors.'
New identity: Now the nCrowd website has reappeared – this time run by Mighty Deals Ltd
WEBSITE RISES FROM ASHES
Since the demise of nCrowd, it has reappeared online, selling anything from cut-price smartphones to spa days. The website is no longer in the hands of Conley but is a trading name of Mighty Deals Limited, demonstrating how easily website names can be sold on. But people ordering from their computers are given only basic information.
According to records kept by Companies House, Mighty Deals' accounts are up-to-date and it has two British-based directors.
But it is not immediately obvious from looking at the new nCrowd website who it belongs to, unless visitors click on the terms and conditions in the smallprint at the foot of the webpage.
Customers should be aware that the website does not list any contact numbers should any problems arise with their orders. Shoppers with queries about anything from returns to missing deliveries must set up an account and sign in, or send questions via the website rather than using an email address.
Mighty Deals boss Mike Rowe says: 'We have a good reputation in the marketplace. We have ambition to grow and therefore want to provide a good level of customer service – we don't want customers to find it hard to contact us.'
'We were frustrated by awful service' – One family tell of their ordeal after shopping at another website, 24Studio.
Fed up: Aidan and Sian Bailey bought a bed for son Quentin
Aidan and Sian Bailey's order from a discount catalogue website failed to arrive, but so did the refund they consequently asked for in an online experience they describe as 'frustrating'.
The couple, from Henfield, West Sussex, paid £315 upfront for a bed for their 13-year-old son Quentin from 24Studio in October last year.
It never turned up so they cancelled the order – but were left waiting until the New Year for a refund, which only landed in their account after several calls to a helpline, dozens of emails and complaining via social media.
Aidan, 45, who works as an operations director for a tax and financial planning company, says: 'The service was awful. Funds were eventually returned to our bank account early this month though by this time, I was also seeking a letter of apology and compensation for wasted time and frustration.'
Eventually the Baileys were put in touch with a complaints manager who looked into their order and offered a £500 goodwill gesture, which they accepted. Aidan adds: 'If something goes wrong it is not as simple as popping into the local shop to explain and sort out.
'We ended up spending weeks making phone calls to a helpline where no one seemed willing or able to take ownership of the complaint. Being ignored after 20 emails only served to anger and frustrate us.'
A spokesman for 24Studio said: 'We apologise that our normal standards of customer service were not met. Following communication with Aidan and Sian they have accepted compensation, which has been sent to them.'
Additional reporting: Dan Andrews in Tennessee
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