Strategic Retail in liquidation
A DIVERSE array of investors including Liverpool College, the Manchester Jewish Federation and a brain injury association all lost out when Strategic Retail collapsed.
The group, which ran the DIY chain Fads and Texstyle world until last year, cancelled its stock market listing in June and has now gone into voluntary liquidation.
The business’s shares have been suspended since December when it was forced to put three trading subsidiaries into administration and liquidate a fourth business.
A newly-filed document at Companies House details the shareholders and creditors of the group which was based in Salford.
Among the largest shareholders were directors David Mond and Roy Gabbie who held around 10% and 5% respectively. But smaller investors included children’s charity Whizz-Kidz, the Manchester Jewish Federation, Liverpool College and Headway – the Brain Injury Association.
Senior lawyers at the Manchester law firm Ralli also invested in the business. The firm’s head of corporate Adrian Anderson, managing partner Martin Coyne, and senior partner Stephen Fox all held shares. Their former colleague Christine Oxenburgh, who is now at Gorvins, was also a shareholder.
The biggest creditor was Aberdeen Asset Management, owed £1.35m. Strategic Retail was owed more than £4m from its subsidiary companies but the company only expects to receive around £225,305. This has left a shortfall for trade creditors owed a total of £1.6m.
Strategic Retail was formed in 2003 as a cash shell to acquire companies in the retail sector. Led by a group of Cheshire-based investors including David Mond from Manchester accountants Hodgsons, Fads was rescued from administration five years ago and placed in the new group which soon floated on AIM.
The group went on to buy Leveys, a North East home decor chain, Texstyle World and Furniture Express. By November 2008 it reported a half-year pre-tax loss of £855,000. The following month administrators were appointed to its subsidiaries.
