DIRECTORS of a company which failed with debts of more than £400,000 have been banned from holding management posts for five years.

An investigation by the Insolvency Service into the Manchester-based contract negotiation firm Renshaw Birch resulted in the disqualification for Ian Harbridge, of Grange Valley, Haydock, and Martin Dowd, aged 39, of Crab Lane, Fearnhead.

Charges relating to the pair, who did not contest the disqualification, allege that Mr Harbridge "condoned employees obtaining confidential information of a competitor without their permission."

He then allowed workers to use that information to help convince customers to cancel contracts with the rival firm and sign new deals with Renshaw.

But the Renshaw contracts were not made subject to the previous deal being rescinded.

The inquiry found that Mr Dowd was "acquiescent" while this was going on.

Later Renshaw, based in Marker Street, Atherton, and Portland Street in Manchester, was sued for damages by the competitor but it could not pay out and was forced into liquidation.

Investigators also discovered that both Harbridge and Dowd had used Renshaw's funds to be used for other companies and individuals' benefit, despite creditors not being paid.