Robert_Charlton - 7:44 pm on Nov 12, 2012 (gmt 0)

I have seen this same template used elsewhere and it is current indexed with PR. I checked the footer links (using a backlink tool) and they've actually used their business name on each backlink.

Assuming that by "same template" here you're referring to my question about whether they've designed WordPress themes, this sets off some alarm bells.

At the time the issue occurred they were running an ad for a genuine give away which didn't sound like anything that would violate Google's policies.

What were they giving away? Was it by any chance the theme with their footer links?

Take a look at this discussion....

Google wants me to remove links from sponsored WordPress themes
http://www.webmasterworld.com/google/4445558.htm [webmasterworld.com]

Conceivably, there's enough similarity to sponsored themes that this site been similarly penalized. What's not completely clear is why the indexing withdrawal was gradual, why it appears that no notice was sent, etc. The timing isn't exactly what I'd expect from a Penguinized site, but, as noted, it does correspond to the giveaway ads.

One more possible strand... though I haven't followed it closely, I also remember hearing that the WordPress community was hit with backlink penalties. Has there been any participation by this site in the community that was hit?