A BLACKBURN company director who headed up two businesses which failed with debts estimated at around £2.7million has agreed not to hold a management position for seven years.

Martin Knagg, 39, of Billinge End Road, was director of Roadways Northern Limited and Roadways Limited, which had premises in Leeds, Loughborough and Bradford.

Roadways Northern Ltd was placed into administration on January 14, 2002, with estimated debts of £1.4million owed to creditors.

The Insolvency Service said that matters of unfit conduct relating to Roadways Northern Ltd, which are not disputed by Knagg, are that he acquired the assets and goodwill of Roadways Limited on June 28, 2000, for £45,000 and commenced trading as groundwork contractors.

Knagg is said to have caused Northern to acquire and continue trading essentially the same business and without any apparent change in the mode of operation.

It is also said that he caused Roadways Northern Ltd to continue trading beyond April 1, 2001, while insolvent.

Roadways Limited was placed into administration on June 28, 2000 with estimated debts of £1.3million owed to creditors.

Knagg is said to have been aware - or ought to have been aware - that Roadways was insolvent by April 9, 2000.

Knagg is prevented from being a director of a company, or in any way, whether directly or indirectly, being concerned or taking part in any promotion, formation or management of a company for seven years.