The two years that brought down former motorbike boss

When Stuart Garner, the former owner of Norton Motorcycles, is sentenced at the end of this month it will mark a remarkable fall from grace for someone who the Government held up as one of the beacons of a post-Brexit Britain.

Garner is facing a potential jail sentence and/or hefty fine when he appears at Derby Crown Court at 10am on Monday February 28 after admitting illegally investing £11m into the business from three pension schemes for which he was the sole trustee.

And yet, just three years ago, Garner was telling Sky News that Brexit would revolutionise Norton’s fortunes. He said: “All day long we would have preferred to remain but now we’ve looked and reviewed our business model in the light of Brexit.

“We have the potential to be bigger, better and stronger, to go across a wider range of export territories than we would ever have looked at if we had stayed Remain.”

Less than 12 months later, Garner’s plummet towards his sentencing at Derby Crown Court began.

In November 2019, Garner took to social media to appeal for investment in the iconic British brand.

Garner made the plea in order to raise £1m – a sum which he would be put towards the manufacture of its V4 superbike and 650 models.

Days after a crowdfunding campaign was launched, Norton was approached by a mystery investor who offered to stump up the entire funding amount it was seeking to raise.

The Castle Donington-based firm said the independent investor was “already a fan of Norton and a motorcycle enthusiast” whose goal was “to fulfil product pipeline orders and continue to grow the Norton brand.”

Just two months later, Norton, then based at Castle Donington, was placed into administration after reportedly failing to pay a £300,000 tax bill.

Just two days later, it emerged that pension schemes related to the company were under investigation.

Some 30 people complained to the Pensions Ombudsman regarding three pension schemes attached to the manufacturer.

Almost two years ago to the day, (February 13 2020), Garner failed to show up in front of the Pensions Ombudsman, despite being called to a hearing over allegations from pension fund member that their retirement savings have disappeared.

Two weeks later, a man who has lost £65,000 as a result of the Norton Motorcyles scandal has called upon the Government to bring the firm’s owner Stuart Garner to justice.

Speaking to TheBusinessDesk.com, Richard Jones said he should be enjoying £300 a month income from one of the pension schemes set up by Norton Motorcyles owner Garner and a lump sum of £18,000, but that he was now in danger of losing out after the manufacturer entered administration in January.

He added: “I would say that this whole scenario has put a tremendous strain on me and my family both emotionally and financially. I am 56 years of age and should be enjoying an extra £300 per month income and a lump sum of about £18,000, instead I have no extra income and the HMRC have added insult to injury by imposing a tax on the money I received initially and a large penalty on top.”

In May, Norton was sold out of administration to TVS, in a move which saved the company from oblivion.

Come June, and Garner was saying that stakeholders who invested millions in pension schemes he ran will receive their money back.

Garner, who was in the same week accused of acting “dishonestly” by the Pensions Ombudsman and was ordered to pay back all the cash Norton pensioners had invested, told Leicestershire Live that the cash “is not missing”.

He said: “I’ve worked with BDO who are sitting on £16 million cash from [the] Norton asset sale with a further several million expected to come in from Norton property sales.

“The money is not ‘missing’. It is all in the business and its assets.

“No-one has agreed what the pension investor amount is yet. But with £16 million in cash and several million of property assets to come in, it looks likely they will receive all their capital back.”

By July of 2020, a range of buildings associated with former Norton Motorcycles boss Stuart Garner are up for sale for just over £13m.

The portfolio includes Donington Hall, Priest House Hotel, Hastings House, The Lansdowne Buildings and Kings Mills Caravan Park, all set in grounds of over 80 acres.

Last Monday (February 7), at Derby Magistrates Court, Garner pleaded guilty to three charges of breaching employer-related investment (ERI) rules by investing more than 5% of assets from each scheme into his business, Norton Motorcycle Holdings.

The court heard how the offences were in relation to three defined contribution schemes: Dominator 2012, Commando 2012 and Donington MC which had a total of 227 scheme members. The investments, which were made in return for preference shares, were made between 2012 and 2013.

Nicola Parish, executive director of Frontline Regulation at The Pensions Regulator, said: “As a trustee, Stuart Garner failed to comply with restrictions on investments which are designed to protect the funds of pension schemes. Trustees have a vital role in protecting the benefits of members and we will take action where that responsibility is abused.

Norton’s new HQ in Solihull

Trustees should be clear on when a pension scheme can invest in its sponsoring employer.”

The maximum penalty for a breach of ERI rules is an unlimited fine and/or a prison sentence of up to two years.

Meanwhile, the story for Norton, post-Garner, goes on. The firm has opened its new global headquarters in Solihull, creating 100 jobs.

The manufacturing facility in Solar Park contains the company’s global design and R&D hub, customer showroom and service workshops.

The new production line aims to produce more than 8,000 motorcycles per year, which have undergone a wide-ranging review to ensure the highest quality of standards are met. More than 100 highly skilled jobs have been created with more to come.