A government department is seeking the winding up of an island-based advertising company over the non-repayment of a £48,000 loan.

The Department for Enterprise has applied for Octopus Media Limited to be wound up, claiming it is unable to pay its debts.

Octopus Media had been provided a loan in 2020 under a support scheme set up to help businesses affected by the Douglas Promenade refurbishment project - but never paid it back.

At the time of the loan, Octopus owned a fish and chip shop on Central Promenade. That business has since changed hands.

The company, based at The Park, Onchan, was incorporated in August 2006, with its joint owners and directors being Matthew Oliphant-Smith and Patricia Blackmore, of Beaumont Road, Ramsey.

It promoted itself as offering a ‘completely “Done For You” social media service’ for local Isle of Man businesses including content creation, media and print advertising, PR and marketing.

In September last year, the DfE issued proceedings against the company seeking repayment of £48,019 owed to it under a loan agreement.

The DfE had established a scheme January 2020 to allow retail and hospitality businesses financially affected by the Promenade refurbishment to apply for an interest free unsecured loan support of up to £50,000.

Judgment and execution in default was awarded in favour of the department the following month. That judgment was in the sum of £49,107 with interest accruing at a rate of 4% per annum.

To date, no money has been recovered.

The judgment was sent to the Coroner for Middle, Kelly Sloane for execution. In February this year, she certified that she could find no land or other property which could be used to settle the debt.

A company is deemed to be unable to pay its debts if ‘execution or other process issued on a judgment decree or order of any court in favour of any creditor of the company is returned unsatisfied in whole or in part’, the DfE’s claim form states.

‘The defendant is therefore unable to pay its debts.’

The department is requesting the appointment of Claire Watterson and Lynsey Smith of Atla Advisory Ltd as deemed official receivers and provisional liquidators of Octopus Media.

A case management hearing is due to take place in the high court tomorrow (Friday, May 16).

In a statement, the DfE said: ‘The loan was provided under the Douglas Promenade Support Scheme. The scheme, established on January 1 2020, provided loan support to local retail and hospitality businesses financially affected by the Douglas Promenade refurbishment scheme.

‘The October judgement and execution against Octopus Media Limited found in favour of the Department for Enterprise and the winding up proceedings following that decision is due to take place this Friday, May 16.’

In January, Companies Registry wrote to Octopus Media warning that it would struck off the register, and the company dissolved, within two months for failing to file its annual return.

The Douglas Promenade Refurbishment Scheme began in November 2018 and was initially expected to be completed by April 2021.

But the £27.7m project was beset by delays and a number of defects during work. It was not completed until March 2022.