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Cabtivate founder staffs up new firm
The founder of Edinburgh-based Cabtivate, the taxi advertising business which went into liquidation two months ago owing creditors including Scottish Enterprise £1m, is recruiting sales executives for a successor venture in the capital.
Mark Greenhalgh, however, faces a potential backlash from the industry, with the imminent publication in the Taxi Globe newspaper of his connection with the new company Tapinto, first revealed in The Herald last month. Cabtivate's directors petitioned for liquidation on January 22, and three days later Tapinto was incorporated by Scottish registration agents, with a head office in Milton Keynes, Buckinghamshire.
On February 21, Greenhalgh was appointed a director, and last week an advertisement on the totaljobs.com website announced: "Tapinto Edinburgh have developed an audio-visual TV system which is installed into black taxis to deliver entertainment, information and advertising to a captive audience."
Greenhalgh recovered from a mauling in television's Dragon's Den programme two years ago to obtain licences in four cities for the installation of his system into black taxis. Cabtivate signed up more than 100 drivers in Scotland and Manchester, who were persuaded to take out four-year payment agreements costing £104 a month on a promise of income of £192 a month. When Cabtivate collapsed, the drivers were left saddled with the debts.
This week's job advert continues: "We would like to hear from individuals with the drive, passion, and desire to flourish within an advertising sales environment." The location is said to be Edinburgh, the salary £15,000 but typical earnings over £25,000, and the job type "permanent".
Ken Pattullo, at liquidator Begbies Traynor in Glasgow, told The Herald last month: "It would certainly be of concern if ... there was intellectual property which was transferred to another company on which we cannot make any recovery on behalf of creditors of the old company. That is something we are looking into."
Sandie Goodwin, editor of Taxi Globe, commented: "A lot of people out there will be outraged at what Mark has done. He owes a lot of drivers a lot of money. He also owes people for advertising within the taxi trade. We shall definitely be warning taxi drivers because this is not the way to do things." Pattullo said: "We are still trying to make some sort of recovery in respect of the intellectual property. The prospects for creditors I would still say are very very slim."
Cabtivate was backed by Bank of Scotland and Scottish Enterprise's Business growth Fund made an investment of £100,000 last year. Its finance director, Iain Mackenzie, resigned on December 4, seven weeks before the liquidators were called in, and while installation of in-cab screens was continuing.
Competitor companies such as Cabscreens at East Kilbride, Lanarkshire, offer their drivers free installation of equipment. Greenhalgh's phone number in Edinburgh was not functioning yesterday. No contact details were given in the online job advertisement.
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