A company that promoted a “miracle cure” for dyslexia has gone into liquidation. Thousands of parents and staff may have been left out of pocket by the collapse of the company, which was taking advance payments until the day it closed.

Dore, named after its founder Wynford Dore, had set up clinics around the world offering an exercise-based treatment for dyslexia. The treatment has been ridiculed by critics, who say there was never any convincing evidence that it worked.

Parents desperate to help their children paid up to £2,000 for the treatments at centres in Britain, Taiwan, Hong Kong, Australia, New Zealand, Barbados, South Africa and the US.

Mr Dore set up the centres after his daughter, Susie, was treated using techniques based on the idea that problems in reading were caused by defects in the cerebellum, the part of the brain that controls movement and memory.

Details of the programme were treated as commercial secrets, even in academic papers. But it included balancing on a wobbly board, standing on one leg, throwing and catching bean bags, and a range of stretching and co-ordination exercises.

Several papers were published in academic journals claiming success for the programme, but without persuading independent experts of its value. One paper, published in Dyslexia, prompted the resignation of five members of the editorial board, and nine critical commentaries from academics.

Dore expanded through personal endorsements, and publicity in the media. Kenny Logan, a former Scottish rugby international, was a paid consultant. But complaints to the Independent Television Commission and to Ofcom about Dore's methods were upheld. Ofcom found that Dore had been in breach of rules on evidence, assessment of medical claims and impressions of professional advice and support.

Last week the Dore centres in Australia went into liquidation, and this week Dore announced on its website that it had been “put into the hands of advisers”.

“As a result Dore is closing all of the UK centres with immediate effect. We are determined to find a way for every client to have their treatment completed.”

The reason for the failure, a spokesman for Dore said, was that every treatment was being sold at a loss. Mr Dore, a millionaire from Warwickshire, who made his money from fire protection products, is understood to have put £15million into the business since it was set up in 2000.

The spokesman said that a statement was being prepared on a way to restructure the company. Clients had been contracted and given exercises to complete. “The long-term plan to was get funding from governments,” the spokesman said. “That hasn't happened.”

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