TWO men have admitted a £66,000 luxury packaging fraud after they failed to deliver the goods their customers had already paid for.

Matthew Lynas, aged 30, of Hillwood Close, Worcester, and Paul Savage, aged 37, of Bowden Green, Droitwich, sold high end packaging to fashion retailers, bridal wear businesses and florists but failed to deliver the products or to reply to customers when they chased up their orders.

Both admitted fraudulent trading when they appeared at Worcester Crown Court on Friday.

They are charged with fraudulent trading between January 1, 2014 and September 30, 2015, knowingly being party to carrying on a business or company (the Luxury Bag and Box Company) for fraudulent purposes, namely the defrauding of customers.

The two men were formally arraigned by the clerk which is when the charges are formally put to them.

Both entered a plea of guilty when they appeared in the dock before judge Nicolas Cartwright QC.

The Worcestershire based-company, Luxury Bag and Box, fraudulently sold high end packaging products to retailers of fashion, bridal wear and flowers, mostly from London and the surrounding areas although one victim was from Worcester.

The company consisted of its director Matthew Lynas and his sales manager, Paul Savage.

Having taken orders for packaging and money up front, the company then failed to provide the goods promised and failed to reply to customers when they tried to chase up their orders or refunds.

Both admitted that although the company had initially been set up with good intention, after February 2015, it became apparent that all transactions thereafter were fraudulent trading as the orders would clearly not be honoured.

The case was prosecuted by Michael Hall. Savage was represented at the hearing by Richard Hull and Lynas by Abigail Nixon.

Mr Hall said there was a basis of plea for Lynas which also applied to Savage and said the trading only became fraudulent in 2015.

An application has been submitted for pre-sentence reports for both defendants.

They were granted bail on condition they do not have contact with each other and co-operate with the probation service in the preparation of the reports which assist the judge when sentencing.

The sentencing hearing was adjourned until February 23 next year.

The hearing is expected to take around one and a half hours