Luxury static caravan company wound up after fraudulently securing loan

Hull-based company, Regal Luxury Lodges Ltd, has been closed down after fraudulently securing a Bounce Back Loan.

The firm was wound up by the High Court and the Official Receiver has been appointed liquidator of the company.

Regal Luxury Lodges was established in June 2019, but by early 2020 was no longer trading.

Through one of its directors, it applied for a £50,000 Bounce Back Loan, although the company was not eligible for a Bounce Back Loan of any amount, having already ceased trading.

Neither director co-operated with the Insolvency Service investigation, and the directors were also found to have failed in their duties to maintain, preserve or deliver up adequate accounting records.

However, it was clear from information available through other enquiries that the company bank account was being misused, with a bank account held by a third party also being used to receive payments from would-be customers.

As a result, the High Court in Manchester agreed that closing down the company was in the public interest, to prevent it being used as a vehicle for fraud.

The company is not related to Regal Holiday Homes or its successor, Regal Leisure Homes, which is now owned by Omar Group.

Dave Hope, chief investigator at the Insolvency Service, said: “Regal Luxury Lodges Limited took advantage of customers by misleading them into making payment for lodges which it was unable to deliver and compounded this by an egregious abuse of the Bounce Back Loan scheme to obtain a £50,000 loan at the taxpayer’s expense, after the company had already ceased trading.

“The Insolvency Service has acted swiftly to bring this company under the control of the Official Receiver to ensure that the conduct of the directors can be fully investigated.”