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Manx firms owed £65k after failed Isle of Man TT merchandise deal

A firm that lost the contract to supply official Isle of Man TT merchandise owes local businesses about £65,000, the enterprise minister has said.

Tim Johnston told the House of Keys that legal action was being taken against Cube International to recover the funds.

The firm’s contract was terminated last month after it failed to pay the Manx government £160,000 in royalties.

Mr Johnston said checks had revealed “no issues” before the deal was made.

Cube International won the contract to supply TT merchandise for the 2023 event and future races in November last year.

Financial information and references were requested from the firm, and the Department for Enterprise (DfE) had performed its own due diligence, Mr Johnston told members.

‘Deeply disappointing’

He said the company had been judged to be a “credible partner” that could meet the contract requirements given its previous work on events such as the Commonwealth Games and the FIFA World Cup.

David Ashford MHK questioned whether the financial checks had been adequate, while John Wannenburgh MHK said it was “not acceptable” for a firm to owe the government and businesses a total of £225,000.

Rob Callister MHK raised concerns there was not enough time for firms to order merchandise for the 2024 event without a supplier in place.

Mr Johnston admitted the situation was “deeply disappointing” and said further checks would be undertaken when future contracts were awarded.

The enterprise minister said he was “confident” the timing of a new appointment would not be an issue, and 18 firms had applied response to a tender seeking to supply branded goods for next year’s event.