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Seven investors apply to put Gavin Woodhouse firms into administration Seven investors apply to put Gavin Woodhouse firms into administration
(about 1 hour later)
Seven investors, who ploughed their savings into businesses owned by the embattled financier Gavin Woodhouse, have applied to the high court to have four of his companies taken into administration.Seven investors, who ploughed their savings into businesses owned by the embattled financier Gavin Woodhouse, have applied to the high court to have four of his companies taken into administration.
The move comes a day after an undercover investigation by the Guardian and ITV News highlighted questions about the business interests of Woodhouse, who has raised millions of pounds from private investors but whose firms have a multimillion-pound “black hole”.The move comes a day after an undercover investigation by the Guardian and ITV News highlighted questions about the business interests of Woodhouse, who has raised millions of pounds from private investors but whose firms have a multimillion-pound “black hole”.
Uncovered: the £200m theme park, the businessman – and the missing millionsUncovered: the £200m theme park, the businessman – and the missing millions
The filing also came as the Bear Grylls Survival Academy, Woodhouse’s partner on his planned new £200m Afan Valley adventure resort in south Wales, said it was “conducting a full internal review of the relationship”.The filing also came as the Bear Grylls Survival Academy, Woodhouse’s partner on his planned new £200m Afan Valley adventure resort in south Wales, said it was “conducting a full internal review of the relationship”.
Creditors to Woodhouse’s businesses filed an application with the high court in London on Thursday requesting the appointment of Phil Duffy and Sarah Bell, directors of insolvency firm Duff & Phelps, as joint administrators.Creditors to Woodhouse’s businesses filed an application with the high court in London on Thursday requesting the appointment of Phil Duffy and Sarah Bell, directors of insolvency firm Duff & Phelps, as joint administrators.
The court documents focus on MBI Hawthorn Care, MBI Clifton Moor and MBI Walsden Care, the three care home project companies through which Woodhouse raised millions of pounds from private investors, but has so far failed to build any facilities.The court documents focus on MBI Hawthorn Care, MBI Clifton Moor and MBI Walsden Care, the three care home project companies through which Woodhouse raised millions of pounds from private investors, but has so far failed to build any facilities.
The filing also requests that the Afan Valley adventure resort is included in the administration orders. A hearing to decide the outcomes of the applications could be set in the coming weeks.The filing also requests that the Afan Valley adventure resort is included in the administration orders. A hearing to decide the outcomes of the applications could be set in the coming weeks.
Phil Duffy, managing director of Duff & Phelps, said: “The latest publicly filed accounts of those four companies show them to all be insolvent on a balance sheet basis so creditors are concerned that they are not going to get their money back”.Phil Duffy, managing director of Duff & Phelps, said: “The latest publicly filed accounts of those four companies show them to all be insolvent on a balance sheet basis so creditors are concerned that they are not going to get their money back”.
Two of the creditors involved in the application are Vijay Devadoss, a 62-year-old retired NHS orthopaedic surgeon, and his wife Anita, who invested £450,000 in nine rooms in Woodhouse’s Clifton Moor development in June 2015.Two of the creditors involved in the application are Vijay Devadoss, a 62-year-old retired NHS orthopaedic surgeon, and his wife Anita, who invested £450,000 in nine rooms in Woodhouse’s Clifton Moor development in June 2015.
The couple say they were due their first interest payment of £78,000 from Woodhouse’s company, Northern Powerhouse Developments (NPD), on 6 June this year but it has yet to arrive.The couple say they were due their first interest payment of £78,000 from Woodhouse’s company, Northern Powerhouse Developments (NPD), on 6 June this year but it has yet to arrive.
About five years ago, hundreds of investors used their savings to back four of Woodhouse’s care home projects – none of which are operational and three of which have never been built. About five years ago, hundreds of investors used their savings to back four of Woodhouse’s care home projects – none of which are operational and three of which have not been built.
Woodhouse is now struggling to pay scheduled dividends. Some investors, who are expecting total investment profits of 125%, have complained that they have been given incorrect information about the status of the care home projects and that the financier has repeatedly failed to provide proof that their funds have been safeguarded.Woodhouse is now struggling to pay scheduled dividends. Some investors, who are expecting total investment profits of 125%, have complained that they have been given incorrect information about the status of the care home projects and that the financier has repeatedly failed to provide proof that their funds have been safeguarded.
The businessman disputes the allegations and says he still plans to build the care homes. He says investors were given false information about the care homes because he himself was misled. He added that investors money is being held in bank accounts.The businessman disputes the allegations and says he still plans to build the care homes. He says investors were given false information about the care homes because he himself was misled. He added that investors money is being held in bank accounts.
A spokeswoman for the Bear Grylls Survival Academy said the firm was “conducting a full internal review of the relationship while we wait for all facts to materialise and plan to take all necessary steps to ensure the integrity of our business”.A spokeswoman for the Bear Grylls Survival Academy said the firm was “conducting a full internal review of the relationship while we wait for all facts to materialise and plan to take all necessary steps to ensure the integrity of our business”.
“The academy continues to have a vision to bring adventure to people of all ages around the world and it stands by that commitment to the community of south Wales.”“The academy continues to have a vision to bring adventure to people of all ages around the world and it stands by that commitment to the community of south Wales.”
On Thursday the websites of both the Afan Valley adventure resort and Woodhouse’s holding company, NPD, were shut down for maintenance.On Thursday the websites of both the Afan Valley adventure resort and Woodhouse’s holding company, NPD, were shut down for maintenance.
Meanwhile Stephen Kinnock MP, who met Woodhouse last year and gave his backing for the Afan Valley project, which is in his constituency, said: “I want to see rapid clarity and assurances that this is a sustainable and watertight business model.”Meanwhile Stephen Kinnock MP, who met Woodhouse last year and gave his backing for the Afan Valley project, which is in his constituency, said: “I want to see rapid clarity and assurances that this is a sustainable and watertight business model.”
A spokesman for NPD said: “We are aware of the requirements of Neath Port Talbot council [on Afan Valley] and we recognise that full planning permission will be granted on condition of further financial and legal obligations being met.A spokesman for NPD said: “We are aware of the requirements of Neath Port Talbot council [on Afan Valley] and we recognise that full planning permission will be granted on condition of further financial and legal obligations being met.
“We are on track to deliver what we have proposed. Afan Valley is still very much a sustainable and watertight business model.”“We are on track to deliver what we have proposed. Afan Valley is still very much a sustainable and watertight business model.”
Northern Powerhouse Developments denies any wrongdoing. Here is its complete response.Northern Powerhouse Developments denies any wrongdoing. Here is its complete response.
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