Henderson to set up rival to Claims Direct

Rachel Stevenson
Monday 02 September 2002 00:00 BST
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Ronnie Henderson, the former chief executive of Claims Direct, is in talks with investors to win backing for setting up a rival personal injury claims company.

Mr Henderson had the funding from venture capitalists to try to buy back parts of the Claims Direct business, which went in to receivership two months ago. But he and four other bidders lost out to a little-known Lancashire entrepreneur Michael Shepherd. Mr Shepherd offered £1m for the company's name, call centre and some senior staff.

"I thought the business was worth £500,000 and I wasn't prepared to pay any more than that." Mr Henderson said.

He warned that anyone buying the company will have to pump up to £5m back in to the business to make it profitable again.

"I'm speaking to investors about starting a new high profile claims business that will rival what Claims Direct once was. I'd rather put money in to a new business than spend it on a company that may not be saveable," he said.

Mr Henderson is now in advanced discussions with a number of potential investors to set up a rival company and expects to have a proposal finalised before the end of September.

Claims Direct floated two years ago. Despite its high-profile television advertising campaign, customers eventually became disgruntled with the business after many found Claims Direct's fees wiped out their compensation awards. These ranged from £1,300 to £1,500.

The company lost £20m last year. Without a bid, the company would have been broken up and sold off to its creditors.

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