High Street Group is facing liquidation, leaving individual investors more than £100 million in losses
The North East development company, High Street Group, which has faced challenges, is in the process of being liquidated as the administrators have been unable to generate returns for creditors.
In 2021, the company responsible for constructing Hadrian's Tower, Newcastle's tallest building, and other major developments across the country went into administration. The company had accumulated debts exceeding £200 million, with over £100 million invested by individuals who are now unlikely to recover their funds from the High Street Group.
A previous report from the administrators indicated that the company had raised funds through loan notes that offered high interest rates. However, the company struggled to handle a situation where many of the loan note holders requested early redemption of their investments. There was initial optimism that Hadrian Real Estate, a company previously associated with High Street Group but under new management, would help by taking on some of the former High Street Group projects.
The recent report from the new administrators indicates that these projects are not expected to generate any financial returns for several years. High Street Group is most famous for constructing Hadrian’s Tower, a luxury apartment complex in Newcastle city centre. The company has also been part of the initial development efforts near St James’ Park and the former Brett Oils site on the banks of the Tyne in Gateshead. In addition, it has completed projects in Birmingham and the North West.
The company faced financial challenges due to project delays during the pandemic. Additionally, one of its subsidiaries went into administration in 2019 after failing to repay an overseas lender, and the company's accounts were significantly delayed, leading to the resignation of two auditors.
The new administrators' report indicates that loan note holders are owed a total of £123.6 million. Furthermore, HMRC has identified a liability of approximately £1 million, and information from the company's accounts suggests an additional £87.7 million is owed to unsecured creditors.
How can we help?
If you believe you've been a victim of mis-sold investment or your investments aren't performing as promised, contact our specialist lawyers for compensation. Call 0800 046 9976, email info@smoothcl.co.uk, or fill out our online form for free initial advice.
Comments