THE boss of a conservatory firm which crashed with debts of £80,000 has admitted he deceived customers by inventing a bogus marketing director.

Speaking during an intense grilling in York by creditors of Claro Vale Ltd, which traded as Direct Conservatories UK, sole director David Richardson revealed that he sent out a letter which ended: "Kind regards. Chris Denton. Marketing Director".

But he said Mr Denton did not exist and he had made up the name and sent the letter himself, because he wanted to improve the firm's image by making people think it had more staff than him alone.

Mr Richardson, of Crambeck Village, near Malton, said he had not realised there was anything wrong in what he had done, which he believed was a fairly common practice in business.

In the letter to Jenny Middleton, of Hull, who attended yesterday's meeting at the Post House Hotel, Mr "Denton" said: "We pride ourselves in the service and product we offer ... ensuring prompt and efficient service."

The meeting heard that more than 40 customers had paid deposits to the York-registered firm for conservatories to be built at their homes, but these had never been built.

Mrs Middleton, who paid a deposit of £692, is among the firm's luckier customers who are being reimbursed by a credit card company because she paid by cash.

But David and Christine Kemp, of Hull, who also attended the meeting, paid an £870 deposit by cheque. They said they had given up trying to get their money back.

Mr Richardson insisted he had never intended letting anyone down. He claimed it had always been his dream to start a quality hardwood conservatory company but he had discovered there was more to running a business than enthusiasm alone.

He admitted he was lacking in other skills required to run a business and this had led to its eventual demise.

Asked how he felt about people who were out of pocket, he said: "I feel terrible." But he said he, his wife and children had also been badly affected, particularly by press publicity.

He said he was paid £20,000 for his work as a director and no one else - not even his wife, Susan - was paid, although she was given remuneration for travel expenses. He denied suggestions by Hugh Rowland-Jones, of KPMG, representing major creditor HSBC bank, that she was paid £2,500 a month by the firm.

"I know it has been made out that we have lived the life of Riley, but really, we have not."

He said he was in personal financial difficulties and was now looking for work. He did not intend trying to run a business ever again.

Creditors agreed to appoint a liquidator to wind up the firm, which is currently under investigation by trading standards officers assisted by fraud squad detectives.