Dore UK clients are “very unlikely” to get a refund of any money they are owed by the company

Dore UK have now released an Administrator’s letter to their customers (PDF). According to the Administrators:

due to the Companies’ financial position refunds are not possible…Whilst it is early in the Administration process, it appears very unlikely that there will be funds available to settle any claim you may have.

Dore’s own FAQ (PDF) makes clear that

As the Company will be in Administration there are no funds available to reimburse clients.

I am sorry to be passing on bad news here. If you are owed money by Dore, I would, once again, strongly suggest that you seek advice ASAP on whether you will be able to reclaim any of this money. The Citizens’ Advice Bureau are a good, free first port of call, and brainduck lists some helpful links.

Dore’s FAQ also states that

Your prime concern will, no doubt, be how you finish the programme. Our concern is exactly the same. We will therefore be focusing all our efforts and resource on identifying ways to market to allow the programme to be continued by our clients.

Although I am sure that the Administrators are acting legally, this is not an admirable position for Dore UK to take, particularly not when they emphasise their empathy with distressed parents. Dore marketed a service to clients: promoting (without good evidence) a programme they said required specialised facilities. Dore may now wish to offer alternative services to new or existing clients. However, this does not make up for the fact that Dore UK is guilty of taking clients’ money for particular services – and then failing to offer either the full services that clients paid for, or a refund to clients.

Numerous public figures – some of them relatively wealthy – have endorsed Dore and played important roles in the running of the company. I wonder if the likes of Wynford Dore, Kenny Logan and Dr Roy Rutherford now feel any guilt about their involvement in and promotion of Dore? And I wonder if they will ever apologise to the clients who have been let down?

Advertisements

14 Comments

Filed under Dore

14 responses to “Dore UK clients are “very unlikely” to get a refund of any money they are owed by the company

  1. Wulfstan

    Mistakes Were Made (But Not by Me): Why We Justify Foolish Beliefs, Bad Decisions, and Hurtful Acts probably explains why there will not be an apology from any of the parties that you name.

    However, although it would be honourable, I wonder if they are labouring under the belief that this might look like an admission of liability? Whatever the motives, it looks uncaring. Administrators have to be distanced from everybody but these people pride themselves on the common understanding that they have with the clients.

  2. Pingback: Dore UK - Out-Of-Pocket Parents « PodBlack Blog

  3. Pingback: Dore - clients are unlikely to recieve refunds, more media coverage and a collection of links « gimpy’s blog

  4. There are some very strange attitudes amongst science bloggers regarding Dore’s collapse .

    The attitude of many is that Dore’s failures proves that the science was bad. This is clearly a false conclusion, the fact that many homeopathy companies continue to flourish gives us clear evidence that bad science is highly profitable.

    Dore failed because of a basic business mistake. His product cost more money than it was sold for. After years of critical comments from bloggers about the #2000 price tag, it now appears Dore wasn’t charging enough.

    Dore’s science may be bad, but science is proved by research and not by business success or failure.

  5. Wulfstan

    I don’t read it that way, Chris – but everyone has their own interpretation.

    I think that most of the commentary that I’ve read has been clear that they think the science is scant and of poor quality. As a separate issue, they have been concerned for some time that Dore was not using a sustainable business model. However, to some extent, the science and business model were intertwined because it seems as if Dore were assuming that there would be government funding at some point. However, the government funding would rely upon an adequate research base and in the absence of this, no funding was available and thus the business eventually collapsed.

    Judging by the comments from ex-employees, it does seem as if the price-tag was inflated by some poor business judgment. You can have something that is simultaneously too expensive and yet losing money – the UK car industry in the 70s comes to mind.

  6. Don Cox

    “However, the government funding would rely upon an adequate research base”

    Well, it _should_ rely on adequate research, but in practice the government funds many things on a basis of pure hunch, guesswork or dogma.

  7. Chris- I certainly don’t believe that Dore UK going into administration proves that their science was bad: I was arguing that the research had been shown to be poor from well before I knew of any financial problems. In fact, I suspect that the poor quality of Dore’s research had rather little impact on the success or failure of the business: they were able to publicise the treatment very effectively in the mainstream media even without good research.

  8. brainduck

    Chris, I’ve said in my blog that I’d rather have argued this on research than finances. I do think the lack of research was one of the things which finally brought them down, insofar as it meant they didn’t get into schools as much as they wanted. I suspect the original business plan was never meant to get as far as it did with all the subsidy it entailed. The research just didn’t justify it being taken up by the Govt though.

  9. TomJ

    I don think the bad science was Dores only problem, although it contibuted to it. A number of people have suggested the following reasons for going bust

    1. Bad publicity. specifically the recent (about 6 months ago) ABC program, this came just before a large number of the australian centers shut.

    2.Gloabl credit crunch. It seems more of Dores clients are low income families, the sort of people for whom getting credit is now near impossible, or prohibitivly expensive, like alot of businesses now. Without the HP the people able to pay for Dore have dried up.

    3. there is a new consumer selling act comin into force in the UK soon, this could cause problems for what dore are selling.

    4. an ex employee, Bob Clarke was due to have an employment trbunal shortly, Dore may have been concerned about what he was about to expose.

    What I dont believe is that Dore was running at a loss. The variable costs for the program were a couple of hundred pounds and they were charging 2500. Any ‘hole’ in thier accounts is probably more likely due to the money being moved to another company etc. Dore states that he never took a ‘salary’ but there are plenty of other ways of getting money out of a company. And there are plenty of companies that have gone under and still made alot of money for thier directors.

    Its just very sad for the clients that wont get anyhting back, in particular, the MyDore thing is just a way of telling clients that they are continuing the program and have no claim. I also find it disgusting that, according to a number of ex employees, they were not allowed to ring clients and tell them not to travel for thier next appointment, instead let them turn up and find an empty office, no notices. This is just a way of stalling people to invalidate any later claim.

    I am surprised at how well people are taking this, saying that they have faith in Wynford Dore and they will be able to complete the program, although I am not sure if these are real people, maybe just part of the marketing.

  10. Yes, I’m a little apprehensive that using My Dore will be taken as a de facto proof of acceptance of a settlement and will preclude any financial refund.

    As for the rest, I would hope that the mainstream media that have the resources and interest will follow this up.

  11. TomJ

    Yes, definately something fishy going on. Under normal circumstances I would just expect them not to do anything about keeping people on the program, but given thier behavior, and the fact that Dore seems to have been a major part of Zebras business (see http://www.zebrafinance.co.uk/dore.htm) it does make me think the are cooperating with eachother, who knows how the compaines are tied together.

  12. Via

    Tomj – You sum Dore’s possible reasons for closure well.

    The relationship between Zebra Finance was openly discussed in the Sales Team.
    According to Zebra, Wynford Dore provided X amount of money , held separately, to cover any possible ‘debt’ that Dore clients might fall into.
    Zebra’s credit scoring was adapted to enable some of Dore clients to take out a loan for the programme. Many of these client would have been considered as “high risk” and credit scoring would normally have been more stringent but for the “safeguard” pot of money, provided by Wynford Dore.

    I wonder if that “safeguard” is still in existence? I would have thought Zebra had the financial acumen, insight and foresight into the impending doom of the green Dore slamming!

  13. keeley

    have been to the soliciters this morning.They have said that “dore & zebra might have been working together.I only joined my son in March paid through “Zebra” for the program.With in 2 months the so called Dore was going bust.A bit of a coincidence or what.Will fight this to the end.They expect you to carry on the program with the internet,what a cheek.Where has my £2,664.36 gone.It was very easy to get the loan ,just had to sign and send back.Something is going on !!!!!!!!!!!!!!!

  14. Keeley, that is wretched news for you. I hope that the solicitors are able to be of some assistance to you.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s